EU looks into extending dumping duties on Chinese bicycles

Giant Manufacturing Co

04/06/2018 12:28

BRUSSELS, June 4 (Reuters) - The European Union opened an
investigation on Monday into whether to extend anti-dumping
duties on Chinese bicycles, after European makers said they
feared an influx of Asian imports could destroy their industry.
    European manufacturers asked in March for a five-year
extension to EU duties on the bikes that were due to expire on
Wednesday.
    A series of EU anti-dumping cases has increased trade
tensions between Brussels and Beijing at a time when both are
facing protectionist measures from Washington.  urn:newsml:reuters.com:*:nL3N1T62ZE
    The bicycle tariffs - in place since 1993 and currently at a
rate of 48.5 percent - also cover Indonesia, the Philippines and
other states, on suspicion that Chinese bikes are being shipped
via them.
    They will now stay in place until the EU finishes its
investigation, a process that will take up to 15 months, the
bloc's official journal said.
    The European Bicycle Manufacturers Association (EBMA) urged
European Commission officials to act, saying Chinese
manufacturers would massively ramp up imports into the bloc if
the restrictions were lifted. 
    They argued that similar moves had already wiped out local
bicycle producers in the United States and Japan.
    The association says Chinese prices for energy, metal and
chemicals are distorted and that international benchmarks should
be used to calculate a fair price for Chinese bicycles.
    It also points to Chinese data showing that Chinese-made
bicycle exports to the European Union increased by 15 percent
last year to 1.66 million units despite the duties, while EU
bicycle sales fell by 6 percent.
    The Commission is also investigating Chinese electric
bicycles following a complaint brought by the EBMA.
    Taiwan's Giant  9921.TW , one of the world's largest bicycle
makers with factories in China, has been involved in both cases.
It won a legal challenge in December 2017 to have import duties
for it to be annulled.

 (Reporting by Philip Blenkinsop
Editing by Andrew Heavens)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))