EU tariff extension on Chinese bicycles shows protectionism: insider

Source:Global Times Published: 2019/6/12 20:48:40

Photo taken on May 27, 2019 shows bicycles displayed at the 2019 China (Taiyuan) International Sports (Bicycle) Industry Expo in Taiyuan, capital of north China's Shanxi Province. (Photo: Xinhua)


The EU's reported extension of anti-dumping tariffs on imported Chinese bicycles is baseless and only reflects its protectionism, industry insiders said, noting that the Chinese bicycle industry is totally market-oriented and gets no government subsidies.

The comments came after Reuters reported Tuesday that the EU is poised to extend for a further five years anti-dumping duties on bicycles from China, claiming that input costs are distorted by "state intervention" and that any lifting of measures would lead to a flood of imports.

The report said that the European Commission has completed a review of whether such measures are still warranted and concluded that they are, citing a document it saw. 

"It's totally unfair and is not justified," an anonymous industry insider told the Global Times on Wednesday. "Chinese industry participants and associations have opposed the move several times, and we've claimed many times that the domestic bicycle industry has not received any subsidies from the government," said the industry insider. But as costs in EU countries are higher, and prices of imported bicycles from China are much lower, the bloc has imposed tariffs on Chinese bikes for more than 20 years to protect the interests of its own industry, the insider said. "That's why I say it's protectionism." 

Chinese bicycles have been subject to anti-dumping duties since 1993, and they now face an import tariff of 48.5 percent. The tariffs also apply to bicycles from Cambodia, the Philippines, Tunisia, Sri Lanka, Indonesia and Pakistan, despite with some exemptions, said media reports.

The EU also announced plans to impose duties of between 18.8 and 79.3 percent on imports of Chinese electronic bicycles on January 19.

Compared with the EU's protectionist policy, China imposed no tariffs on bicycles from the EU, and offers them a level playing field with domestic companies, said the insider. "The EU should give up its protectionism and create a favorable environment for the development of the industry." 

According to a statement on the website of the China Bicycle Association (CBA), it will continue to maintain stable development of the industry, and will promote the diversification of markets, especially in the countries and regions along the China-proposed Belt and Road Initiative.

"EU consumers buy around 18 million bicycles per year, with just over 60 percent supplied by local manufacturers. Chinese imports make up only about 4 percent of the EU market," Reuters reported in June.

"The EU now only accounts for a small percentage of China's total exports," the industry insider said, indicating the move will not have much influence on the domestic industry.

First-quarter output of bicycles produced by major enterprises was 9.75 million, down 8.1 percent year-on-year, while output of electric bicycles reached 5.72 million, an increase of 21.3 percent, figures from the CBA showed.

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