Dumping Discussions Dominate Taipei Cycle
TAIPEI, Taiwan – It’s certainly not business as usual at the Taipei Cycle Show which is taking place this week. Of course that’s caused by the mix-up with the show schedule, which means that another Taipei Cycle will take place in just five months. But what’s having an even bigger impact than the fact that the largest Asian trade fair features fewer exhibitors as well as visitors, is the unpredictability of how the market will change in the short term.
Will a major move of the e-bike production out of China come in the next months? That question is widely discussed at the show in Taiwan’s Capital. This is caused by the fact that by now the message has sunk in among the Chinese e-bike producers and exporters which is drastically changing their attitude towards the anti-dumping issue. Was there first indifference; now there’s outright panic as that they are more and more convinced that it is very likely that high dumping duties are coming. And even within about three months.
That high dumping duties are very, very likely to come is triggering e-bike producers and exporters in China to search for creative ‘solutions’ to their problems. In particular as these extra duties will effectively kill their margins which were already thin and for a part consisted of the 10% export subsidy paid by the Chinese government, as sources indicate.
Avoiding dumping duties
What’s talked about at Taipei Cycle is that Chinese manufacturers and exporters want to try to avoid the high dumping duties on the e-bikes they export to Europe by shipping them on a completely or semi-knockdown basis. They do not seem to realize that by operating like that they are violating European regulations, which can lead to heavy fines.