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China’s Bike Industry Campaigns for Drop of Anti-Dumping Duties

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After first issuing statements on the cumulated losses the bike industry in China endured during the 17 years of European anti-dumping duties (see last week’s Newsletter); the country is now knocking on doors in Brussels to avoid another 5 year term of extra levies on its exported bikes. Zhang Peisheng (photo) headed a

China’s Bike Industry Campaigns for Drop of Anti-Dumping Duties

BRUSSELS, Belgium – After first issuing statements on the cumulated losses the bike industry in China endured during the 17 years of European anti-dumping duties (see last week’s Newsletter); the country is now knocking on doors in Brussels to avoid another 5 year term of extra levies on its exported bikes. Zhang Peisheng (photo) headed a delegation of Chinese bicycle makers that attended a hearing held by the European Commission in Brussels last Thursday, December 9.

Zhang Peisheng, senior commissioner from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), is the country’s expert in the EU anti-dumping cases for bicycles against China. He was closely involved in the dumping investigation of 2004 against the Chinese bike industry. This investigation turned into a rise in anti-dumping duties from 30.6% to 48.5% in 2005.

At that time Zhang Peisheng called the imposed duties ‘unfair and unjust’. This time he said at the hearing: “The allegations of the European Bicycles Manufacturers Association (EBMA) are misleading and unfounded.” He was supported by Eric Jiang, a lawyer representing the Chinese manufacturers, who disputed the injury claim raised by the EU bicycle industry.

Jiang said the EU industry actually enjoyed higher profitability and a larger market share despite the economic crisis and rising competition. “The European manufacturers managed to sell at a price of 20% higher in 2009, as compared to what they did five years ago. And despite the strong competition with Asian imports the European bicycle industry is still strong, producing more than 60% of the EU market consumption.”

As reported by the Xinhua news service Zhang Peisheng further noted that the 17-year-old duties have shielded EU manufacturers from global competition and reduced the incentive for them to become more competitive. “Instead, they are used to and expect again this time that the European Commission will come to their rescue by another five years’ duties against China, to defer ‘indefinitely’ the inevitable day when it has to address its own internal inefficiencies and failings.”

At the hearing the delegation from the Chinese industry also brought forward that the lack of competition results in European consumers having to pay an unjustifiable higher price and that they are deprived of better choice. Further, said the delegation, the anti-dumping measures are interfering with EU’s ‘green transport’ campaign.

 

 

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