Economy

Regulations cause problems for electric bicycle manufacturers

By Zhao Chunzhe (chinadaily.com.cn)
Updated: 2009-12-15 16:39

China's electric bicycle manufacturers may face troubles as a result of a new regulation passed by the Standardization Administration of China (SAC), cctv.com reported Tuesday.

The new regulation categorizes electric bicycles heavier than 40 kg that can reach speeds of 20 kilometers per hour as motor vehicles, which means that owners will have to get driving licenses and take a road test.

In addition, companies making such bicycles are required to have a total investment of 200 million yuan ($29.3 million), including at least 80 million yuan ($11.7 million) in equipments and 100 million yuan ($14.6 million) in fixed assets, according to the cctv.com report.

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"Only 8 or 10 pedal bicycle companies fill that requirement, less than one percent out of the industry," said Lu Jinlong, a commissioner of the Pedal Bicycle Commission of China's Bicycle Association. "Millions of workers could lose their jobs".

The electric bicycle is popular in China because it is faster than regular bikes and cheaper than the oil-consuming motorbikes and cars -- and, until this new regulation, did not require any license to ride.