European Parliament Speaks Out on China Market Economy Status
BRUSSELS, Belgium – A group of 70 Members of the European Parliament, led by Edouard Martin, David Borrelli and Emmanuel Maurel, launched a stakeholders consultation last March on whether Market Economy Status should be granted or not to China. The results of this consultation have been published recently.
The consultation result shows that out of 6,000 responses, 91% is against granting Market Economy Status to China. Moreover, on last May, 84% of the European Parliament voted a resolution against the automatic granting of Market Economy Status to China.
‘Impact on EU jobs could be substantial’
The resolution on which the European Parliament voted states, “China’s overcapacity is already having strong social, economic and environmental consequences in the EU, as demonstrated by its recent detrimental impact on the EU steel sector, in particular in the United Kingdom, and the social impact on EU jobs of granting market economy status to China could be substantial.”
Impact on bicycle industry
The final verdict on the Market Economy Status of China (expected for the end of this year) will have an impact on the bicycle industry in Europe. By the way 15 years ago when China entered the World Trade Organisation agreements were made by the EU and the USA to review this status in 2016. When both EU and USA decide to grant China this status, all current anti-dumping measures are immediately under pressure. Including the one concerning bicycles that are imported into the European Union from China.
Currently, the anti-dumping measures increase the ex-works price of China made bicycles by close to 50%. For decades now, these measures have protected the European bicycle industry against a flood of ultra-cheap bicycles from China. Last year the 28 EU countries imported a total of 495,000 bicycles from China; up 11.5% on the 2014 total.