EU executive poised to propose tariffs on Chinese e-bikes

Giant Manufacturing Co

16/11/2018 11:00

By Philip Blenkinsop
    BRUSSELS, Nov 16 (Reuters) - The European Commission is set
to propose final duties to curb cheap imports of Chinese
electric bicycles that European producers say are benefiting
from unfair subsidies and flooding the European Union market.
    The Commission, which is investigating on behalf of the 28
EU members, believes that definitive or final tariffs of between
18.8 and 79.3 percent should apply for all e-bikes coming from
China, according to a "disclosure document" seen by Reuters.
    Taiwan's Giant  9921.TW , one of the world's largest bicycle
makers, which has factories in China as well as in the
Netherlands, would be subject to a rate of 24.8 percent.
    The rates are slightly lower than the provisional duties of
between 21.8 and 83.6 percent set in July.  urn:newsml:reuters.com:*:nL8N1UE4XS
    The anti-dumping and anti-subsidy 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 EU shares U.S. concerns about technology transfers and
state subsidies but does not advocate a trade war. The United
States has imposed tariffs on $250 billion worth of Chinese
goods, and Beijing has responded with retaliatory duties on $110
billion worth of U.S. goods, although the two are in talks.
 urn:newsml:reuters.com:*:nL2N1XO0X5 
    The definitive duties on e-bikes need to be approved by EU
countries and would need to be in place by Jan. 18. They
typically apply for five years. Interested parties have until
Nov. 26 to comment on the Commission's plans.
    The Commission found Chinese exports of e-bikes to the
European Union more than tripled from 2014 until September 2017.
Their market share rose to 35 percent, while their average
prices fell by 11 percent.
    It has also said Chinese producers benefit from controlled
aluminium prices and advantageous financing and land rights
conditions and tax breaks.
    The European Bicycle Manufacturers Association, which
brought the case, welcomed the sign of the Commission's intent,
saying the investigations had proven Chinese e-bikes were
flooding the EU market at artificially low prices, supported by
subsidies.
    Trade measures, it said, would shield 90,000 EU workers and
over 800 small and medium companies against unfair competition.
    EU producers include Dutch groups Accell  ACCG.AS  and
Gazelle, Romania's Eurosport DHS and Germany's Derby Cycle
Holding.
    LEVA-EU, a group opposed to measures, said the proposed
duties would exacerbate damage already done to European
importers and mark the start of "dark days" for the whole
European electric bicycle sector, including consumers.

 (Reporting by Philip Blenkinsop, editing by Larry King)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))