EU's anti-dumping measures against the mainland bicycle case 2019.6.17

On 4 June 2018 the European Commission launched an expiry review of the anti-dumping measures applicable to imports of bicycles from China. This investigation is now finalized, and the findings are in the disclosure document. The commission now concludes that “there is a ‘strong likelihood’ that Chinese producers would return to selling at artificially low prices and in high volumes if the anti-dumping measures were lifted.” The European Union is poised to maintain anti-dumping duties on Chinese bicycles for another five years.

According to the European Commission, during the review period, the Chinese import prices were substantially below the Union industry’s sales prices despite the anti-dumping measures in force during the period considered. On this basis, it was concluded that Chinese exports of bicycles to the EU would be made at dumped and injurious prices, undercutting the Union industry sales price, should measures be allowed to lapse.

The 13th 5-Year Plan mandates a consolidation in the Chinese bicycle industry to create national and international champions. China’s bicycle and e-bike production capacities hoover around 200 million units compared with total worldwide demand of 120 million units. China’s ever-expanding bicycle and e-bike manufacturing overcapacity is now almost five times larger than the total EU market of 22 million bicycles and e-bikes per year. Furthermore, Section 301 tariffs imposed by the US on many Chinese products, including bicycles, is leading many US buyers to seek supplies in other Asian countries and to drastically reduce the order book of Chinese exporters in 2019. Hence, Chinese exporters are focused on dumping their overproduction in the EU market.

The European Commission extended the measures on imports of bicycles originating in China to imports of bicycles consigned from Indonesia, Malaysia, Sri Lanka, Tunisia, Cambodia, Pakistan and the Philippines whether declared as originating in Indonesia, Malaysia, Sri Lanka and Tunisia or not. It goes without saying that the disclosure document indicates what the European Commission will decide on the 48.5% anti-dumping duties that are currently levied on bikes made in China which are imported into Europe. 

Latest date for parties which have co-operated in the proceedings to submit comments on the final disclosure letter is 2 July 2019. The European Commission is legally forced to publish that decision no later than 3 September 2019.

2019-06-21
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