EU extends tariffs on Chinese bicycles, fearing import flood

BRUSSELS, Aug 29 (Reuters) - The European Union has extended
for a further five years anti-dumping duties on Chinese
bicycles, the bloc said in its official journal on Thursday,
after concluding that any lifting of measures would lead to a
flood of imports.
Imported Chinese bicycles have been subject to anti-dumping
duties since 1993, currently with an import tariff of up to
48.5%.
The extended duties are the latest in a series of EU
measures against Chinese exports ranging from solar panels to
steel, which have sparked strong words from Beijing.
The European Union also decided in January to impose duties
of up to 79.3% on imports of Chinese electronic bicycles.
Beijing said then that it was "highly concerned" by
the move, which it said came despite market opposition, and that
it would assess what steps to take.
The measures on regular bicycles have since 2013 also
applied to those coming from Indonesia, Malaysia, Sri Lanka and
Tunisia and since 2015 to those from Cambodia, Pakistan and the
Philippines, albeit with some exemptions. The Commission says
these imports are principally of Chinese bikes.
The tariffs do not apply to Taiwan's Giant 9921.TW , the
world's largest bicycle manufacturer, which has facilities in
Taiwan, China and the Netherlands. The company won a case at the
European Court challenging EU anti-dumping duties in 2017.
EU consumers buy around 18 million bicycles per year, with
just over 60% supplied by local manufacturers. Chinese imports
make up only about 4% of the EU market, although the other
countries' share was about 17%.
However, Chinese producers have spare capacity to make an
extra 37 million bicycles, the EU's official journal said.
Bicycles were also identified as a key industry in China's
current five-year plan and its Made in China 2025 initiative.
Chinese officials did not respond immediately to a request
for comment on Thursday.
This meant there was a "strong likelihood" Chinese producers
would return to selling at artificially low prices and in high
volumes if the anti-dumping measures were lifted. The EU also
says input costs are distorted by state intervention.
The European Bicycle Manufacturers Association welcomed the
extension, saying that without measures Chinese exporters would
have driven EU producers out of their own market, as had already
happened in the United States and Japan.
The industry in the European Union, made up of more than 900
generally smaller companies, has a turnover of 12 billion euros,
employing 100,000 people directly and indirectly, the
association said.