News Article

Giant China Wants its Dumping Conviction Reviewed

Laws & Regulations

TAICHUNG, Taiwan – Giant China is looking for a review of its dumping conviction by the European Commission and is for that appealing to the Court of Justice of the European Union. Depending on the decision of the Court the biggest bike maker in the world, that targets a production of 7 million units of which 2.8 million in China, will apply for an exemption investigation at the European Commission.

Giant China Wants its Dumping Conviction Reviewed
Giant China is looking for a review of its dumping conviction by the European Commission and is for that appealing to the Court of Justice of the European Union. – Photo Bike Europe

Already in August 2013 Giant China appealed to the Court of Justice of the European Union for a court ruling as the company claims that the Council Regulation of June 5, 2013 contains: “Errors of assessment,”; “Violations of the rights of defense of Giant China,” as well as “Violations of principles of non-discrimination and proportionality.”

The Council Regulation of June 5, 2013 imposes the 48.5% anti-dumping duty on imports of bicycles originating in the People’s Republic of China following an interim review.

Big stir

This Council Regulation caused a big stir in China and Taiwan. In particular as it exempts three Chinese companies from the 48.5% dumping duty on bikes made in China that are imported into the EU. The three companies are: Zhejiang Baoguilai Vehicle Co. Ltd.: 19.2% duty; Oyama Bicycles (Taicang) Co. Ltd.: 0% duty and Ideal (Dongguan) Bike Co., Ltd.: 0% duty. It goes without saying that the exemption from the anti-dumping duties presents Ideal (Taiwan’s number three bike maker that operates also facilities in China) big benefits.

Giant ‘singled-out’

In July 2013 Bike Europe reported on an article in ‘Cycle Press’ in which a disgruntled Giant China President Barton Cheng says: “They singled us out by name and said that we had not cooperated with the investigation. But it wasn’t that we didn’t cooperate; it was that we couldn’t cooperate.”

‘Significantly deficient reply’

On the cooperation from Giant China for the interim review investigation the Council Regulation of June 5, 2013 says: “The reply of one group, Giant China, was considered as being significantly deficient as it did not include all the required information on the structure of the group, notwithstanding the Commission’s efforts to obtain the necessary information from the group.” The Council Regulation document also states: “As required by Article 18(1) of the basic Regulation, Giant China was informed of the likely application of facts available to it and invited to provide comments. As Giant China, however, refused to provide the Commission with the necessary information, Article 18(1) of the basic Regulation was applied and the claim for Market Economy Treatment was rejected.”

Giant President Tony Lo: ‘No Comment’

Bike Europe asked Giant President Tony Lo for more on this matter. His reaction was: “No comment.”

On 19 August 2013 Giant China filed its case against the Council at the Court of Justice of the European Union. To date, a court ruling hasn’t been issued. The same goes for a notice of an exemption review which, when Giant goes for that, is to be published in the Official Journal of the European Union.

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