Chinese Bicycles Gear up for Tough Ride

BEIJING, China (July 21) - The China Bicycle Association is urging Chinese bicycle exporters to improve standards to strengthen the industry. The remarks came as Chinese bicycle exporters failed to alter the ruling of an EU anti-dumping charge. On July 14 the European Commission accused Chinese bicycle makers of dumping in the European Union market and said it would levy a penalty tariff of 48.5 %. "Enterprises should avoid low-priced bad practices to guarantee the sustainable development of the whole industry," Hu Xiaofeng, an official with the bicycle association, told China Daily yesterday. She also suggested bicycle firms should pay more attention to research and development and keep a close eye on international guidelines, "as they are likely to face more trade barriers as well as technical barriers," the expert said. The final tariff charge will last for five years but in fact, China's bicycle sector has been paying a 30.6 % tariff charge since 2000 having been accused of dumping. That expires this month. Chinese bicycle makers and the association did all they could to lower that tariff but failed. "One reason is the export quota regime implemented in the country," said an expert who closely watches the industry but declined to be named. He explained that the original purpose of the regime was to avoid an abnormal surge in bicycle exports. "However, it was taken by the European Commission as evidence of government interference in China's bicycle industry," he said, adding that the Chinese Government should learn a lesson from this case. Not satisfied with the final EU ruling, at least three Chinese bicycle makers, including one of the leaders, Giant, have filed appeals to the European Commission to reconsider. China exported 1.5 million bicycles to the EU last year. Chinese bicycles are also under investigation in Canada.