EU sets provisional import duties on Chinese e-bikes (updated)

Giant Manufacturing Co

18/07/2018 11:27

(Adds details of measures, EU e-bike group's reaction)
    By Philip Blenkinsop
    BRUSSELS, July 18 (Reuters) - The European Union will impose
duties from Thursday on Chinese electric bicycles in a move to
curb cheap imports that European producers say are flooding the
market.
    The 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 has called on countries to avoid a trade
war. Earlier this month, the United States and China slapped
tariffs on $34 billion of each other's imports.  urn:newsml:reuters.com:*:nL4N1UC1M
    The European Commission, which is carrying out an
investigation on behalf of the 28 EU members, decided that
tariffs of between 27.5 and 83.6 percent should apply for all
e-bikes coming from China, the EU official journal said.
    Taiwan's Giant  9921.TW , one of the world's largest bicycle
makers with factories in China as well as the Netherlands, was
subject to the lower rate of 27.5 percent.
    The investigation itself is set to run until January 2019,
when definitive duties typically lasting five years could apply.
    The Commission found Chinese exports of e-bikes to the
European Union more than tripled from 2014 to the 12 month
period until Sept 2017. Their market share rose to 35 percent,
while their average prices fell by 11 percent.
    The European Bicycle Manufacturers Association, which
brought the case, said it applauded the decision, adding the
duties would give European e-bike makers the chance to recover
lost sales.
    EU producers include Dutch groups Accell  ACCG.AS  and
Gazelle, Romania's Eurosport DHS and Germany's Derby Cycle
Holding.
    Imports of Chinese e-bikes were subject to registration from
early May, meaning that the duties could be backdated until
then. There is also a parallel EU investigation into whether
Chinese e-bike exporters have benefited from excessive state
subsidies  urn:newsml:reuters.com:*:nL8N1OL0XN

 (Reporting by Philip Blenkinsop
Editing by Robert-Jan Bartunek and Raissa Kasolowsky)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))