EU Is Not Granting Market Economy Status to China
BRUSSELS, Belgium – It got snowed under in the Eurobike news storm, but it’s now official. The Europe Union will not grant China Market Economy Status. This decision means that the current anti-dumping measures on the import of bicycles from China will not be changed and stay in place up to June 2018. When at that time the dumping measures are to be reviewed then they will stay in force up to March/April 2019.
That the EU will not grant China Market Economy Status was already announced end of July. European Commission’s Vice President Katainen and Commissioner for Trade Malmström announced this after a Commission’s orientation debate on 20th July.
‘Ensure free and fair trade’
A week before the European Commission’s announcement, the European Economic and Social Committee officially stated that, “If we lose the tools to ensure free and fair trade with China, an unacceptable figure of hundreds of thousands of jobs will be lost. Losses would be concentrated in particular sectors such as aluminium, bicycles, ceramics, electrodes, ferroalloys, glass, paper, solar panels and steel.”
New Anti-Dumping methodology
Next to its decision on China’s Market Economy Status the European Commission also announced end of July the application of a, “New non-standard methodology for dealing with anti-dumping calculations for imports from China: the new Anti-Dumping methodology will not be based on Chinese prices and costs but on international ones, following the U.S. methodology.”
What this new Anti-Dumping methodology really means is now being examined by AEGIS Europe. This is an industry alliance representing 30 key industries (including the bicycle industry) aiming to promote manufacturing investment, innovation, jobs and growth in Europe.
Dumping duty exemptions
Currently, the anti-dumping measures increase the ex-works price of China made bicycles by 48.5%. Oyama Bicycles (Taicang) Co. Ltd and Ideal (Dongguan) Bike Co., Ltd are exempted from the anti-dumping duty while for Zhejiang Baoguilai Vehicle Co. Ltd a 19.2% dumping duty is in place; see the EU document on the bottom of this page.
For decades now, the anti-dumping measures have protected the European bicycle industry against a flood of ultra-cheap bicycles from China. In 2015 the 28 EU countries imported a total of 495,000 bicycles from China; up 11.5% on the 2014 total. Total bicycle import into the EU stood at about 7.5 million units in 2015.