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<b>China 2008:</b> Exports Levelling Off

Sales & Trends

BEIJING, China After years of unprecedented growth the export of bicycles from China is now levelling off. According to Chinas national customs office 30.43 million bicycles were exported worldwide in the first half of 2008. Compared with the previous first six months this is a slight 1.8% drop in units. The uncertain economic situation has put exports under even more pressure.

<b>China 2008:</b> Exports Levelling Off

BEIJING, China – After years of unprecedented growth the export of bicycles from China is now levelling off. According to China’s national customs office 30.43 million bicycles were exported worldwide in the first half of 2008. Compared with the previous first six months this is a slight 1.8% drop in units. The uncertain economic situation has put exports under even more pressure.

The number of Chinese-made bicycles imported into the European Union dropped by 2.3% from 809,291 units in 2006 to 790,530 bicycles in 2007, excluding e-Bikes (source: Eurostat). The uncertain economic situation has put these exports under even more pressure.

During the first six months of 2008, China’s export of electric bicycles dropped 1.3% in units to 695,820 e-Bikes. However, like bicycles, exports of e-Bikes jumped in value terms, increasing by as much as 57% plus to a total export value of US$ 123.09 million (€ 86.9m), according to the national customs bureau.

At the end of 2008 the Chinese Government announced a new increase in export subsidies for bicycles. This subsidy was a part of a € 455bn rescue plan for the economy. To safeguard its manufacturers from the economic downturn the Chinese government has raised export subsidies on over 3,700 products, including bicycles. This was completely contrary to the general expectation and a clear indication of the troubles faced by the Chinese bicycle industry. In order to stimulate exports the export subsidy rate will go up from the current 9% to between 11 and 14%. It was only in 2007 that China dropped the export subsidy rate for bicycles by 4% to 9%.

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