EU Decision on Chinese E-Bikes: LEVA-EU Responds with Call for Strengthened Market Surveillance + Removal of Duties on Bike Components
The European Commission has decided to extend the anti-dumping and countervailing measures against imports of electric bicycles from China for another five years. This decision follows an expiry review investigation and aligns with expectations. The remaining imports of electric bicycles from China predominantly consist of extremely low-cost products. For LEVA-EU, this provides strong grounds to call for significantly enhanced market surveillance.
Three Key Reasons Behind the Decision to Extend Measures The European Commission extended the measures based on the following findings:
Continuation of Subsidisation . The Commission claims that the investigation confirmed that Chinese electric bicycle producers continue to benefit from substantial subsidies, including preferential loans, tax exemptions, and government-supported provision of essential components such as engines and batteries at below-market prices. These subsidies create unfair competition within the EU market.
Likelihood of Recurrence of Injury. According to the Commission, evidence demonstrated that removing the duties would likely lead to a resurgence of harm to the EU's electric bicycle industry. The potential influx of low-priced, subsidised imports could jeopardise the sustainability of EU producers and employment in the sector.
Union Interest . The Commission also believes that retaining the measures aligns with the EU's broader economic and strategic goals, including advancing the green and digital transitions. Safeguarding the domestic electric bicycle industry allegedly supports innovation and sustainable transportation solutions within the EU.
Current Trade Measures: A Double-Edged Sword While the expiry review concluded that repealing the measures would likely result in a surge of dumped imports, LEVA-EU contends that these measures inadvertently facilitate the entry of extremely low-cost electric bicycles that cannot realistically comply with EU technical regulations. This poses safety risks, as evidenced by several accidents, including at least one fatality, caused by non-compliant products.
During the review period, nearly 221,000 Chinese electric bicycles were imported at an average price of €298. For comparison, electric cycles imported from Vietnam averaged €790, while those from Taiwan reached €1,393! LEVA-EU questions how Chinese electric cycles priced so low can adhere to stringent EU requirements, such as testing according to EU legislation, maintaining technical files, CE-labelling, appointing authorised representatives and organising end-of-life battery collection.
Market Surveillance and Compliance Gaps . LEVA-EU highlights the proliferation of non-compliant electric cycles, mostly models with motor assistance exceeding 25 km/h. In the Netherlands, inspections eventually led to confiscation of thousands of illegal electric cycles, though not before a fatal accident occurred. Similar problems persist across the EU, often worsened by online sales channels.
Adding to the complexity is the potential circumvention of trade measures. Millions of vehicles under HS code 8711 60 90 90 are imported annually, raising concerns about the misclassification of electric bicycles to evade duties. There are no duties on products under this code.
Challenges with Component Duties. LEVA-EU also underscores the ongoing major difficulties caused by dumping duties on conventional bicycle components, which are also used for assembly of electric cycles. These duties are subject to complex exemption processes, and European production capacity for components remains insufficient to meet demand. Many EU assemblers therefore have no other option but to buy components in China. Meanwhile, customs authorities disproportionately concentrate their efforts on inspecting and frequently taking an overly aggressive stance against EU assemblers. This approach generates significant legal uncertainty, further exacerbating compliance challenges for businesses.
A Call to Action: Prioritise Market Surveillance and Remove Barriers. LEVA-EU urges the European Commission to reallocate resources from trade defence measures to implementing robust market surveillance mechanisms. Ensuring the effective enforcement of technical regulations is essential to stop the influx of low-quality, non-compliant products into the EU market. Additionally, LEVA-EU strongly advocates for the removal of duties on bicycle components to reduce obstacles for assemblers, foster growth, and encourage innovation in the European electric cycle sector.
"Robust market surveillance, not trade defence, is the only sustainable way forward," says Annick Roetynck, Managing Director of LEVA-EU. "By addressing these critical issues, the EU can support a thriving and competitive electric cycle industry while ensuring safety and compliance for consumers."
