China Remains the Prime Target

MAARSSEN, Netherlands (November 26th) - Despite the fact that the EBMA did not apply for a renewal of the anti-dumping duties for Taiwan made bikes; Brian Montgomery, keeps on snapping at the heels of the Chinese bike industry. Stating that the Chinese government is actively subsidizing its bicycle industry with exports grants of up to 17%. Support for the native industry is forbidden under the rules of the World Trade Organization (WTO) - and since China is now a member of this body they should refrain from such practices, says the EBMA Chairman. He further states: "They now 'generously' propose to lower the 17% subsidy to a 14% subsidy on January 1st 2004 (Chinese Ministry of Finance bulletin Oct.2003). Timed for the holiday season it is still a meager present, says Montgomery. Going on to say that the Chinese have already destroyed the American bike industry, and are well underway to do the same to the Japanese, Montgomery would rather like them to withdraw the subsidies altogether to restore equal opportunities and to comply to the WTO rules. "A 50% part in the total world-supply of bikes would seem to be enough to satisfy even the most demanding producer: not so the Chinese alas, are they aiming to add the European bike industry to their list of conquests?" (MH)