News Article

Long Wait for Giant China in Dumping Review

Laws & Regulations

BRUSSELS, Belgium – Giant China is already waiting seventeen months for a final verdict after the company appealed to the Court of Justice of the European Union for a review of its dumping conviction by the European Commission. And Giant might have to wait for another year.

Long Wait for Giant China in Dumping Review
Bike manufacturers operating in China like Oyama that are exempted from anti-dumping duties were presenting their competitive advantages at Taichung Bike Week. - 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 on the continued dumping duty for the China industry of June 5, 2013 contains: “Errors of assessment”, “Violations of the rights of defence of Giant China”, as well as “Violations of principles of non-discrimination and proportionality”.

Hearings

“The procedures in writing at the Court of Justice have been closed and we are waiting for the hearings,” said lawyer Philippe De Baere who is representing Giant China. “It might take up to the end of 2015 before the Court of Justice will present a verdict.” In case of an appeal Giant China will have to wait even longer for a final decision.

Worthwhile to continue?

The question is whether it is still worth for Giant to continue this procedure. The current anti-dumping measures on bicycles imported into the European Union from the People’s Republic of China officially run up to June 2018. And when a review procedure initiated by the European industry is started by the European Commission the anti-dumping measures for the Chinese bike industry will run up to June 2019 at the latest. Industry insiders expect that in June 2019 there will come an end of over 20 years of dumping measures on bicycles made in the People’s Republic of China that are exported to the EU markets.

Exempted companies

Three companies from China are exempted from the dumping duties for bicycles made in China: Zhejiang Baoguilai Vehicle Co. Ltd. (19.2% anti-dumping duty); Oyama Bicycles (Taicang) Co. Ltd and Ideal (Dongguan) Bike Co. Ltd (0% anti-dumping duty). Both Oyama Bicycles and Ideal Bike are currently taking full advantage of the situation to obtain a firm foot-hold on the European market.

Taichung Bike Week

“Our unique selling point over other Chinese manufacturers is the privilege of the 0% anti-dumping duty,” said Oyama’s European sales manager Richard Chang at the 2014 Eurobike. Also at Taichung Bike Week last November, both Oyama and Ideal Bikes were clearly presenting their anti-dumping duty advantages over its competitors.

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