In 2017, the flooding of the European e-bike market with bikes from China caused enormous price collapses. In response, the European bicycle manufacturer (EBMA) filed a complaint against the EU Commission. In 2019, investigation and review procedures by the EU Commission came to the conclusion that China is providing considerable support to its domestic aluminum market and favoring some companies with a preferential tax rate.

Anti-dumping measures were introduced to protect the European economic area. Since 19th January 2019, e-bike imports from China have been subject to anti-dumping and countervailing duties ranging from 18.6 to 73.4 percent.

Legal action against imposed punitive tariffs

The Chinese group “Giant Electric Vehicle Kunshan Co. Ltd.”, which is also affected by increased tariffs, had sued the EU in mid-2019 against the punitive and countervailing tariffs. At the end of April 2022, the General Court of the European Union allowed the action and confirmed errors in the methodological approach to the assessment of the company Giant. Thus, the punitive and countervailing duties for Giant were eliminated.

Reopening of the anti-dumping and anti-subsidy investigation

The EU Commission has recently resumed anti-dumping and anti-subsidy investigations. The focus is on Giant.

The EU Commission wants to eliminate the errors found by the Court within the context of a reopening of the proceedings. At the same time, it is to be assessed „whether the application of the rules as clarified by the General Court warrants the re-imposition of the measures
at the original or, if any, a revised level as from the date on which the regulations at issue originally entered into force” says the Official Journal of the European Union.

So it remains to be seen whether Giant’s electric bikes will become more expensive again in the future.

Source: Official Journal of the European Union