AD Investigations

European Bicycle Manufacturers Association welcomes EU Expiry Review of dumped bicycles from China

Monday 4 June 2018 – Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA) said: “The EBMA applauds today’s European Commission decision to launch an expiry review of anti-dumping measures on Chinese bicycles. Following its investigation, we believe that the European Commission will concur with the facts, that trade defence measures must be continued. Otherwise China will ramp up dumping massively and cause crippling injury to the European bicycle industry.”

Fioravanti continued: “The EU currently imposes 48.5% EU anti-dumping duties on imported Chinese bicycles. EBMA lodged a request with the European Commission in early March 2018 to extend EU anti-dumping measures on conventional bicycles from China which would otherwise have expired on 6 June 2018. Without a level playing field, Chinese exporting producers would flood the EU market with dumped bicycles and rapidly drive the EU industry out of the market, which already happened in the USA and Japan. The EU must extend anti-dumping measures on Chinese bicycles to ensure fair competition, benchmark innovations like the pedal-assist e-bikes developed by the EU Industry, green jobs and growth in Europe.”

Bicycles form a strategic innovative industry for Europe’s green future. The EU bicycle, e-bike & components industry generates annually over €1 billion in EU investments and approximately €12 billion growth in industrial output. The bicycle/e-bike industry is one of the largest employers of the “green industries” in the EU. Overall, the European bicycle industry maintains 90,000 direct and indirect jobs in the Union market, with over 800 SMEs working in 20 of the 28 Member States directly in bicycle, pedal-assist e-bikes & cycle components production, or in jobs dependent on the EU bicycle industry. The EU bicycle, e-bike and components industry and its broad local manufacturing base is the guarantee for EU consumers of very innovative, high quality and safe products, with the most sustainable carbon footprint and best progress toward a long-term circular economy goal. Indeed, to import yearly into the EU 20 million bicycles from China would result in massive needless extra emissions of more than 2 million tons of C02 and dangerous sulphuric dioxides. In addition, the poor quality and non-respect of minimum quality standards and REACH, as with the bike-sharing bicycles from China, will also in Europe deepen a very dangerous “use-and-throw-away” trend.

Fioravanti said: “Fuelled by illegal subsidies and massive overcapacity, China is poised to take over the EU bicycle market through dumping and circumvention, including massive volumes of (low-quality) bike-sharing bicycles. The 13th 5-Year Plan mandates a consolidation in the Chinese bicycle industry to create national and international champions. The largest Chinese bicycle manufacturer Fushida receives massive central and local government subsidies, fuelling its production overcapacities which exceed total EU demand. In 2017, the annual Chinese bicycle production capacities were approximately 130 million bicycles compared with total worldwide demand of 120 million bicycles.”

During and following the last expiry review, Chinese bicycle producers began circumventing the anti-dumping measures on a large scale. The Commission found in two consecutive anti-circumvention investigations, in 2013 and 2015, that circumvention was taking place via not less than seven countries (Indonesia, Malaysia, Sri Lanka, Tunisia, Cambodia, Pakistan and the Philippines).

Also Chinese bike-sharing companies, most importantly the three largest players Ofo, Mobike and Obike, started in 2017 to expand aggressively their bike-sharing business with a renewed increase of exports of dumped Chinese-made bicycles to many European cities. Indeed, according to Chinese statistics, bicycle exports from China to the EU increased from 1,437,954 bicycles in 2016 to 1,658,057 in 2017, due primarily to an increase in exports of (low quality) bike-sharing bikes. This increase in Chinese exports to the EU took place despite a decrease in overall bicycle sales in the EU, which dropped from 19,672,000 in 2016 to 18,500,000 in 2017.

“Because of their negative impact on both bicycle demand and city environments, low quality Chinese bike-sharing bicycles in the EU represent a major threat to both the EU bicycle industry and EU cities. In China, the massive oversupply of the market with bike-sharing bikes, over 20 million bicycles in less than a year, led to a huge drop of more than 50% in bicycle and e-bike production and sales! At the same time, extensive bike-sharing bike “graveyards” have caused tremendous disruption to traffic and city landscapes, pollution and health hazards. To date, the export of Chinese bike-sharing bikes to the EU has been much lower than it otherwise would have been thanks to the current anti-dumping duties on bicycles; it is another reason why those anti-dumping duties must be extended. Therefore, the EBMA calls on the European Commission to prolong EU anti-dumping measures on conventional bicycles from China beyond 6 June 2018,” concluded Fioravanti.

You can find the full press release here.

You can find the official notice of the European Commission here.

European Bicycle Manufacturers Association applauds EU Registration of dumped e-bikes from China

Thursday 3 May 2018 – Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA) said: “The EBMA applauds today’s European Commission decision to order the registration of all imported e-bikes from China, a first vital step for the legitimate defence of 90,000 EU workers and over 800 SMEs against unfair competition. This means that provisional EU anti-dumping measures may be imposed on Chinese e-bikes imports with effect prior to 20 July 2018 and as early as tomorrow.
Today’s decision by the European Union should send a clear signal to Chinese e-bike companies to stop their dumping in the EU, and to the Chinese Government to stop its massive subsidy programs, such as “Made in China 2025”, which are unfairly favouring Chinese e-bike exporters. European importers should also wake up to the concealed costs of Chinese e-bikes and the injury they are causing to European industry, EU employment and the environment. European e-bikes are the right green choice for European consumers.”

You can find the full press release here.

To see the official notice of the European Commission click here.

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

EBMA Press Release

EBMA Briefing Paper

Video “Europese fabrikanten in aanval tegen Chinese dumping e-bikes”

Reuters “EU e-bike makers make complaint against Chinese imports”

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