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European Commission Started Investigation on Subsidised Bike Imports from China

Industry- & Retail Organizations

After receiving a complaint from the European Bicycle Manufacturers’ Association (EBMA) the European Commission have started an investigation on subsidised bike imports from China. The Chinese bike industry has responded negatively on the investigation by Brussels.

European Commission Started Investigation on Subsidised Bike Imports from China

BRUSSELS, Belgium – After receiving a complaint from the European Bicycle Manufacturers’ Association (EBMA) the European Commission have started an investigation on subsidised bike imports from China. The Chinese bike industry has responded negatively on the investigation by Brussels.

The European Commission announced its newest investigation on bike imports from China, which is related to the interim review on the anti-dumping measures, at the end of April.

Allegations by EBMA
According to the in the Official Journal of the European Union announced investigation it is instigated because on the allegations made by the EBMA in a March 15 lodged complaint. This complaint stipulated that Chinese bike producers have benefited from a number of subsidies granted by the Government of the People’s Republic of China.

According to the EBMA these subsidies consist of exemptions from income and other direct taxes as well as a large number of other subsidies. The EBMA alleges that the schemes are subsidies since they involve financial contribution from the Chinese Government or other regional Governments. They are alleged to be contingent upon export performance and/or the user of domestic over imported goods and/or limited to certain types of enterprises and/or regions and therefore specific and countervailable.

Response Chinese industry
The European Commission has started an investigation on the EBMA allegations in China and among bike producers in Europe. According to sources in China the Chinese industry has responded very negatively on the investigation. Next to that the Chinese bicycle manufacturers are taking a passive attitude on EU’s anti-subsidy investigation due to the fact that in the past their cooperation on such investigations didn’t have any results.

The European investigation announcement says on non-cooperation from producers and exporters in China: “In case where any interested parties refuses access or does not provide the necessary information within the time-limits, or significantly impedes the investigation, the result may be less favorable to that party than if it had cooperated.”

Click here for the complete European Commission Investigation Notice.
 

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