BEIJING, China – The on March 9, 2012 announced interim review investigation of the anti-dumping measures for bikes imported from China is not the only review that’s initiated by the European Commission. The same goes for a number of other products imported into the European Union from China. According to a Chinese commerce official it’s because the EU measures violate World Trade Organization (WTO) rules.
Next to bicycles also interim reviews for stainless steel fasteners, aluminum foil, ceramic tiles, ironing boards and electrodes imported from China are announced by the European Commission. The Chinese press agency Xinhua quoted yesterday a Chinese commerce official who welcomed the European Commission's reviews, saying the European Union should rectify its anti-dumping investigations that violate World Trade Organization rules.
A spokesman for the treaty and law department of the Central Government’s Ministry of Commerce said China expected the EU to implement the WTO's recommendations and remove as soon as possible the discriminatory measures and legislation inconsistent with the WTO rules. "China looks forward to the EU treating Chinese companies fairly and promoting a healthy bilateral trade relationship," the spokesman said.
That the European Commission is initiating several interim reviews is most probably caused by what has been stated in the review notice on bikes. It is said here: “In particular, the information at the disposal of the Commission indicates that the export quota system that applied to bicycle producers in the People's Republic of China and that hindered the exporting producers in being granted market economy treatment in the amending interim review, has been abolished in January 2011.”
The dropped export quota system means that China abolished export subsidies. It granted bike exporters in China an up to 14% subsidy on their shipments which they received from the Central Government. The export quota system didn’t apply to bikes only. As it’s now dropped completely, China is granted market economy status by the WTO.
Bike Europe asked Brian Montgomery, Chairman of the European Bicycle Manufacturers Association (EBMA), to comment on this article. He said: “The situation is that the EU trade defense rules are based on the WTO rules. The Commission explained very thoroughly in their notice C 71 their reasons for the interim review - which the Chinese official does not appear to have read.”