Production Relocation Hot Topic at China Cycle Due to Dumping Worries
SHANGHAI, China – The consequences of a possible dumping conviction for e-bikes produced in and exported from China is a hot topic at the China Cycle Show. Will it bring an all-out production relocation? This largest bicycle show in the industry with more than 160,000 visitors, opened its doors last Sunday with everybody trying to find an answer on the single question: will the European Commission decide to impose a dumping duty on China made e-bikes or not?
“We are currently experiencing a stage of transformation and upgrading,” said Ma Zhongchao, chairman (and show organizer) of the China Bicycle Association before the start of the show. On the show floor last Sunday and Monday, the Chinese e-bike industry seemed to be more occupied with the short-term future and a different kind of transformation Ma Zhongchao had in mind.
Future manufacturing base
While some of China’s e-bike manufacturers are considering to move their production to Japan or Taiwan in order to prevent their customers paying anti-dumping duties, others are busy to find strategic partners in Europe for relocating their production. In this case specifically Portugal, Poland, Romania and Bulgaria were frequently mentioned as an option for their future manufacturing base.
Frustrating the business
The publication in the European Union’s Official Journal to make the imports of electric bicycles originating in the People’s Republic of China subject to registration even resulted in the cancellations of orders. European importers don’t want and can’t run the risk of paying an unknown percentage of (provisional) anti-dumping duty on China made e-bikes arriving in Europe from 4 May 2018 onwards, the day after the registration order was published in the European Union’s Official Journal with which the measures came into force. Importers already run the risk of having to pay for the (provisional) anti-dumping duty on e-bikes which are currently shipped to Europe. The long investigation period of 16 months including the decision-making process on the e-bike dumping case by the EU is regarded by many as frustrating for the bicycle industry.
More European visitors
The uncertainty on the outcome of the dumping investigation on China made e-bikes in combination with the absence of the Taipei Cycle Show last March attracted more Europeans to the show in Shanghai this year. Although the official statistics on the number and origin of the trade visitors have not been published yet by the show organizer, exhibitors confirmed the increased number of European as well as South-American visitors.