This is not the first time that the European Union has shut down its bicycle products in China, and as early as 25 years ago, the EU relied on trade protection measures to make ordinary bicycle products from China heavily taxed for many years thereafter - the Chinese bicycle trade in Europe The prosperity of the film market halted.
'This is a major European market to use the policy of major reshuffle.' November 9, electric bicycle maker Jinhua Zhuoyuan Industrial Co., Ltd. general manager Xiang Can on the Economic Observer reported that once the investigation is established, will be from China's electric Bicycles devastate.
Not only are Chinese companies dissatisfied, but the EU's petition also worries Ton van den Oetelaar, the Dutch brand. "The average consumer, the largest buyer group, may not buy it anymore." He told the Economic Observer It is predicted that when the anti-dumping duty arrives, electric bicycles will become expensive.
The vibrant Chinese electric bike in the European market will not repeat the same mistake made by ordinary bicycles 25 years ago and has become a topic of common concern for both Chinese and European companies. The industry is still thinking that in the face of non-domestic emerging industries, blind trade Protection is really conducive to the development of the industry and the common human living environment do?
As a signatory to the Paris Agreement on Climate Change, both China and the EU are making their own efforts to tackle the global climate change, as Czech electric bike brand Mgr. Jakub Ditrich recalled earlier when the European Union imposed anti-dumping duties on bicycles Said taxation did not involve e-bikes precisely because they contributed to the reduction of greenhouse gas emissions and green transportation, and what he did not understand was that as the e-bikes grew in urban traffic, European Commission 's "defender who" behind.
Even more difficult for Chinese enterprises to indignantly is that the survey will choose the price of Switzerland as the 'alternative country' price. In the case of Xiang Can, the criteria for selecting a country are not in line with the actual situation. The act of selecting 'alternative country' itself Does not meet the WTO rules.
According to Article 15 of the "Protocol of China's Accession to the WTO," in any event, the reference to the benchmark price of similar products in alternative countries as a definition of dumping should be terminated 15 years after China's accession to the WTO (ie, December 11, 2016) .
The 'alternative pricing law' was also strongly opposed by the Chinese Ministry of Commerce.
Economic Observer reported from the relevant person in charge of China Chamber of Commerce for Import and Export of Machinery and Electronic Products was informed that the Chamber of Commerce has on behalf of China's electric bicycle industry submitted relevant comments.As of press time, there are 78 Chinese companies involved in the investigation submitted to the European Commission Responses and sample responses.
Price dispute
Bicycles with pedaling and auxiliary motors are the products under investigation, including electric power-assisted bicycles and high-speed electric bicycles originating in or exported from China, and the EU customs codes are 8711 60 10 and ex 8711 60 90.
There are three main types of products involved: electric city bicycles, electric mountain biking and electric mountain biking.All three types of products are equipped with hub motor or motor.
China currently has no technical bottlenecks, effective logistics and a complete industry chain. "He Xianbing, co-founder of Octopus (Suzhou) Co., Ltd., introduced the Economic Observatory and, thanks to this, the price of electric bicycles in China is relatively reasonable , Did not deliberately depressed.
According to Mgr. Jakub Ditrich, in Europe, the boom in the industry started just five years ago.
Complaints about the European price, He Xianbing analysis, like European companies, the price is very high, due to cost, technical deficiencies caused by Chinese companies think that 15% -20% of the profits will be enough While European monopolies think '50% of the profits are low.'
Chen Huiqing, director of the legal department of the Chamber of Commerce of Machinery and Electric Corp., analyzed the Economic Observatory that the prosecutors argue that the increase in unit costs is due to the shift from wheel hub motors to center-mounted electric motors and the popularity of mountain electric bicycles, but it is also possible that the prosecution made market The erroneous prejudgment, the excessive cost of manufacturing mountain bike electric bicycles more expensive than the actual needs of the market, resulting in the prosecution can not get enough profits, thus being damaged.
In addition, the survey will choose the price of Switzerland as the 'alternative country' price. 'Switzerland is one of the most expensive countries.' In Chan's view, the criteria for choosing a country are not in line with the actual situation. Choose the 'alternative country' This act itself does not conform to the WTO rules.
According to Article 15 of the "Protocol of China's Accession to the World Trade Organization," any case of quoting the benchmark price of similar products in alternative countries as a definition of dumping should be terminated 15 years after China's accession to the WTO (ie December 11, 2016).
The case of "alternative country pricing law" was strongly opposed by the Chinese Ministry of Commerce November 9, at a regular conference held by the Ministry of Commerce Spokesman Peak said that 'this behavior is clearly contrary to China Accession to the WTO's international obligations under Article 15. "He said that closely tracking the progress of the case, paying close attention to the consistency between the EU's practices in the investigation and WTO rules, he will take the necessary measures to resolutely safeguard the interests of Chinese enterprises Legitimate rights and interests
The consequences of anti-dumping on electric bicycles in China
'The investigation once established will devastate China's electric bikes.' 'Chan Chan told the Economic Observer.' The approval of a high import tariff on electric bicycles will result in a serious shortage of bicycles on the market and a sharp rise in market prices Of course, that is exactly what European manufacturers, who are lobbying for anti-dumping duties, are happy to see, 'said Mgr. Jakub Ditrich to the Economic Observer.
Ordinary bikes have been taxed for anti-dumping for 25 years, with the consequence that most ordinary bikes are now manufactured in Eastern Europe, while Ton van den Oetelaar, the head of Dutch brands, sees that the Chinese related industries Is growing rapidly and should not be denied. 'Good quality bicycle manufacturers should be allowed to export to Europe.'
The prosecution believes that the implementation of anti-dumping measures will not have a significant negative impact on consumers in the EU involved in the product.Economic Observer interviewed many industry insiders questioned.Can Chan analysis, the result of anti-dumping is likely to be China's The whole car became a part import, and the market price increased. As a result, the electric car assemblers in Europe got high profits, which would damage the interests of consumers.
Many European brands also told the Economic Observer that they are concerned that they will lose some of their market. "Consumers are harmed by rising prices, which is not conducive to the sustainable development of the industry." Ton van den Oetelaar believes that, Everyone has the right to own an electric bicycle, and not just the few rich.
Labor-related considerations have also been overlooked in the process. 'It's hard to find workers in Europe and all young people want to do marketing.' Ton van den Oetelaar told Economic Observer that while only 7% of EU citizens own The average income should not increase the cost of electric bicycles.
In Europe, labor and social security do not have the benefits in terms of efficiency. Ton van den Oetelaar believes that the EU can not ignore the availability of labor in Europe, the cost issue, and the fact that most parts are manufactured in China. "Outsourcing for us It makes sense that we will focus on marketing, sales, EU regulation, research and development and services. '
Twenty-five years ago, the European Union sacrificed the interests of consumers for the self-interest of individual enterprises and made the European bicycle industry stand still. Now, with the same trade protection measures, new innovative products and Chinese-made electric bicycles are rejected from the EU This is the issue of domestic electric bicycle companies common concern.
As introduced by MOFCOM Spokesman Peak at a regular conference on November 9, China's electric bicycle industry is a fully competitive industry. The Chinese and European industries have extensive cooperation in supporting supply chains and technological solutions, We hope that the EU can conduct a fair and objective investigation and do not over-protect the related industries at the expense of the environment, the upstream and downstream industries of EU and the interests of consumers, "said the peak.
European Industry Association and German producers
'This is a long-awaited act.' He Xianbing heard the rumors of such investigations as early as last year, but he did not agree at the time, 'We have our own patents, their own technology, in line with European laws and regulations.' According to him Introduction, China's electric bike has started from 95 years, and Europe in 2000 was the real electric bike design.
The real reason is that the technology in China is evolving and the EU producers are losing market share, which violates the interests of certain groups.
The applicant for the case is the European Bicycle Manu-factures Association (EBMA), an industry group representing the manufacturers of electric bicycles in the EU countries such as Germany, the Netherlands, Hungary and France. It is also the tradition 25 years ago EU bicycle anti-dumping investigation of applicants.
The European Bicycle Manufacturers Association filed a dumping complaint on September 8 stating that the producers it represents represent more than a quarter of the EU's total output.
Mgr. Jakub Ditrich does not know who the behind-the-scenes advocate of this lobbying campaign had contacted Fio-ravanti, the secretary-general of the EMBA, who introduced the anti-dumping investigation introduced at the European Commission - - Ask who is a member of his association and a supporter, and what surprised him was that the other side refused to answer on the grounds that the list of members was not open.
According to feedback from all parties, Bosch is the most important promoter of the behind-the-scenes. "The electric bicycle drive system sold by He Xianbing sold more than 80% to Europe, and throughout the indictment, The system is compared to Bosch, a German company. "At the moment, Bosch's central motor system is in absolute monopolies in Europe, especially in Germany. If the European Union crowds out the enterprise where He Xianbing is located (ie Bafang Electric) through anti-dumping Out of Europe, its monopoly will be substantially increased.
In the final analysis, 'electric bicycles are green transportation industry, the threshold is relatively low, governments in developing their own brand, do not want to hand over market share', He Xian soldiers think.
The European Commission has nine months to decide whether to impose provisional anti-dumping tariffs on China before finally determining whether to formally impose a five-year tariff .As a signatory to the Paris Climate Change Agreement, both China and the EU are responding to the global climate Changes make their own efforts.EU whether the EU will consider the positive contribution of electric bicycles, but also become the focus of attention of the industry.
He Xianbing has set a ticket to Europe.Next, he will lobby the European media PR company, and consider prosecution of the involved parties Bosch in Germany's monopoly.