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Bike makers in for bumpy ride
(China Daily)
Updated: 2005-06-09 08:40

Chinese bicycle exporters might face stricter market conditions in European countries after the penalty tariff against them increased.

The European Commission has made the preliminary rulings to impose a 48.5 per cent penalty tariff on bicycles originated from China for dumping.

"Chinese enterprises are still making every effort to gain a better result," said Hu Xiaofeng, an official with the China Bicycle Association. But she declined to disclose the details.

She said the proposal to reach a reference price had been declined by the European side.

The final ruling is scheduled to be made on July 15.

China's bicycle makers have been charged of dumping and imposed with a 30.6 per cent punitive tariff since 2000.

The prior ruling will expire in July.

They claimed they never conducted any dumping in the European market and their exports had done no harm.

Hu said the China bicycle manufacturing industry was complementary with that of European countries as they focus on low and high end respectively.

Meanwhile, Chinese ventures have learned to protect themselves with World Trade Organization (WTO) regulations.

Several Chinese companies, including Giant, a leading bicycle maker in the country, have filed appeal to the European Commission to reconsider their market economy treatment.

"The market economy treatment is essential to Chinese companies under an anti-dumping charge as the United States and the EU had not granted China the market economy status," said Fu Donghui, a legal expert with Beijing AllBright Law Office.

China exported some 1.5 million bicycles to the EU last year to become a major supplier, particularly low and medium end products.

Made-in-China bicycles are also facing protectionism in Canada, which has started investigation on its imports of bicycles and bike frames toward safeguard measures.

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