European Bicycle Manufacturers Association applauds launch of new EU investigation into illegal subsidies on e-bike imports from China
Thursday 21 December 2017 – Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA), applauded the European Commission who announced today that they will launch a new anti-subsidy investigation into imported Chinese e-bikes: “We strongly welcome the new European Commission investigation into the illegal subsidies of Chinese e-bikes, which are flooding the EU at an alarming rate and artificially low prices. Chinese e-bike exporters benefit from massive subsidies from government bodies at every level in China which have encouraged enormous overcapacities. European bicycle manufacturers cannot compete with the scale of state-sponsored dumping and are already suffering loss of jobs, investment and growth. Some European e-bike manufacturers have recently gone bankrupt due to unfair competition from China. ”
“We are encouraged to see in today’s Official Journal of the EU that the European Commission is launching an antisubsidy investigation against Chinese e-bike exporters, in addition to their anti-dumping investigation announced on 20 October 2017”, said Fioravanti.
The only reason Chinese e-bike exporters can sell at such low prices is due to massive subsidies from government bodies at every level in China which have also encouraged enormous overcapacities. European e-bike manufacturers cannot compete with the scale of their state-sponsored dumping and are already suffering loss of jobs, investment and growth. Imports into the EU from China will have jumped from virtually zero in 2010 to more than 800,000 e-bikes in 2017.
“Our European bicycle, e-bike and components industry is one of the largest generators of green jobs in the EU, and the dumped Chinese e-bikes put at serious risk the employment of over 90,000 EU workers and 800 SMEs (Small and Medium-sized Enterprises). Some European e-bike manufacturers are being put out of business by unfair competition from China. For instance, Mifa, the largest German bicycle and e-bike producer recently went into insolvency proceedings due to Chinese dumping and subsidies,” said Fioravanti.
Hence, the EBMA filed an anti-subsidy complaint to the European Commission in November 2017 against Chinese ebike exporters. We have documented numerous illegal subsidies by Chinese government bodies including; preferential loans by State-owned banks; export credit subsidy programmes; export guarantees and insurances; opening and provision of credit lines; and various grant programmes. Ominously the 13th Chinese 5-Year Plan sets a clear goal that the “export of electric bicycles will be dramatically increased”.
E-bikes are a strategic innovative industry for Europe’s green and smart transport future. The global e-bike industry is poised to grow from 200 million worldwide today to 2 billion by 2050. It is predicted that eventually, e-bikes will account for one of every three bikes sold in the European Union, a ratio now achieved only in the Netherlands.
“It is vital for Europe that our e-bike industry prospers in the face of such threats from China. We must ensure a level playing field with China for the European e-bike industry, in order to see more growth, innovation, and investments in the EU leading to the creation of more SMEs and Green Jobs. The European Bicycle Manufacturers Association (EBMA) together with allies including the European Small Business Alliance (ESBA) and AEGIS Europe are calling on the EU for immediate action to stem the flow of dumped and subsidised e-bikes from China. Unless we stop China dumping e-bikes they will soon control the majority of the EU market, destroying our investments, innovation and competiveness, as well as substantial employment and the protection of the environment. If the entire annual EU demand for bicycles and e-bikes were imported from China, their production would generate over 2 million MT more in CO2 and other emissions than if the bicycles were made in the EU due to shipping, coal energy, hazardous materials and other factors”, concluded Fioravanti.
You can find the full press release here.
To see the official notice of initiation click here.
European Bicycle Manufacturers Association strongly welcomes launch of much-needed EU investigation of dumped e-bike imports from China
Friday 20 October 2017 – Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA), reacted very positively to the announcement in the EU’s Official Journal of Friday, 20 October: “We strongly welcome the new European Commission investigation into the dumping of Chinese e-bikes, which are flooding the EU at an alarming rate and artificially low prices. EBMA has also asked the European Commission for the immediate registration of Chinese e-bike imports, which will allow EU anti-dumping duties to be imposed retroactively, and will shortly file an anti-subsidy complaint.”
Fioravanti called on the EU for immediate action to stem the flow of dumped e-bikes from China: “EBMA and the EU manufacturers of bicycles, pedal assist e-bikes, and components are firm believers in free trade, but trade must also be fair. Injuring domestic producers through imports which are dumped and heavily government-subsidised is against the WTO rules. We have asked the Commission to order the registration of Chinese e-bikes as soon as possible so that the blatant disregard of trade rules by Chinese e-bike manufacturers can be stopped quickly.” He continued, “We are confident that the Commission will make a thorough analysis and confirm the massive scale of dumping from China which is injuring EU producers and destroying sustainable manufacturing jobs, Innovation, growth and investment in Europe.”
“Our European bicycle, e-bike and components industry is one of the largest generators of green jobs in the EU, and the dumped Chinese e-bikes put at serious risk the employment of over 90.000 EU workers and 800 SMEs (Small and Medium-sized Enterprises). We must do whatever it takes to legitimately defend our workers and our manufacturing SMEs, including our European know-how, new products and investments. It is our people and our investment in new technologies which make the European bicycle, e-bike and components industry one of the most innovative industries in the world,” pointed out Fioravanti.
“Chinese e-bike exporters, on the other hand, benefit from massive subsidies from government bodies at every level in China. Those subsidies have encouraged enormous e-bike manufacturing overcapacities, which are then dumped in the EU.”
Imports into the EU from China will have jumped from virtually zero in 2010 to more than 800,000 e-bikes in 2017. 2016 e-bike imports from China, over 430,000 units, represented 70% of all e-bikes imported from outside Europe and a massive 40% volume growth compared to the previous year.
“If this dumping is not stopped, China will quickly grab an e-bike monopoly in Europe. Dumped Chinese e-bikes are causing injury to European industry which is harming the European economy and consumers worldwide. Indeed, local EU manufacturing by SMEs is the only sustainable future for the EU, both to create new green jobs and to really cut carbon and other dangerous emissions”, concluded Fioravanti.
You can find the full press release here.
To see the official notice of initiation click here.
European Bicycle Manufacturers Association files EU anti-dumping complaint to stop the dumping of Chinese e-bikes
Monday 2 October 2017 – Moreno Fioravanti, Secretary General at the European Bicycle Manufacturers Association (EBMA) announced: “dumped Chinese e-bikes are flooding the EU market. European e-bikes are undercut and overwhelmed in their home market by heavily subsidised, illegally dumped Chinese e-bikes sold below their cost of production. Imports of e-bikes from China have been increasing quickly and have now exploded, with imports in the first seven months of 2017 already exceeding the entire 2016 import volume. Imports into the EU of e-bikes from China increased from virtually zero in 2010 to a level likely over 800,000 in 2017. Therefore, we have filed a complaint with the European Commission, calling for the registration of imports and urgent anti-dumping measures on e-bikes from China. The EBMA is also preparing an anti-subsidy complaint. We urge the European Commission to investigate the unfair trade practices of Chinese e-bike exporters as soon as possible.”
More than 430,000 Chinese e-bikes were dumped into the EU in 2016, representing 70% of all e-bikes imported from outside Europe. Chinese imports in 2016 showed a massive 40% volume growth compared to the previous year.
“European manufacturers invented the Electrically Power Assisted Cycles (EPAC) pedal technology and the most recent innovation, the centre engine system, which revolutionised the industry. With over 90,000 direct and indirect skilled workers, the EU bicycle industry has invested over €1 billion in e-bike development in 2016 alone. Hence, major EU investments, innovation and competiveness, as well as substantial employment and the protection of the environment, would be at risk without the imposition of measures,” said Fioravanti.
According to data from the Confederation of the European Bicycle Industry, e-bike production capacities in China were at 51 million units in 2016 and consumption at 28 million, meaning there exists a Chinese overcapacity of 23 million e-bikes, which is more than ten times total European demand. Alarmingly, the People’s Republic of China’s 13th 5-Year Plan sets a clear 2020 goal that the “export of electric bicycles will be dramatically increased” and the “portion of middle and high-end bicycles and lithium battery electric bicycles will be increased year by year”.
In contrast, total 2016 EU production was just over 1 million e-bikes, which though an increase of 13% on the previous year, was much less than the growth of EU consumption because of the flood of dumped Chinese e-bikes. Overall, the European market is booming, but the explosion in growth of dumped Chinese e-bikes is rapidly taking away market share from the EU producers, and will annihilate European production within only a few years if legitimate trade defence measures are not imposed by the EU.
“The European Commission must stop China dumping e-bikes and immediately register imports so anti-dumping duties can be applied retroactively. We are confident the European Commission will find that China is dumping e-bikes on a massive scale and that is causing material injury to European manufacturers. Anti-dumping measures are clearly in the EU’s interest because e-bikes are a strategic, innovative industry for Europe’s green and smart e-mobility future, and European consumers and suppliers all want local EU production to prosper”, concluded Fioravanti.
More info can be found in the links below
EU Official Journal 5th June 2013: European Union’s Citizens’ Interests – Section H:
Please find below an excerpt from the latest anti-dumping investigation on bicycles showing that also the European consumer organization ECF is in favor of these measures, as a monopoly from China would harm both the quality, the variety of models and the service of bikes.
Read the full text here.