The European Commission has extended the anti-dumping duties on China e-bikes by 5 years, so will the UK follow suit?
The European Union has extended its anti-dumping duty rules over electric bikes from China being shipped into EU member states. This tax is designed to act as a levelling mechanism in the market, with the idea that European e-bike companies will be able to trade on a more competitive basis than if there were lots of Chinese e-bikes flooding the market.
Now, as we all know, and have been starkly reminded of over the last few years, the UK is no longer classed as an EU member state. But, the UK government has, until now, continued to implement the same anti-dumping duty on imported Chinese e-bikes. But will that continue after the latest meeting from the European Commission?
What are the Chinese e-bike anti-dumping duties?
The European Commission decided on Friday 24 January to renew the anti-dumping and countervailing duties the market imposes on the import of Chinese electric bikes into European member states. What this means is that the anti-dumping duties, that range from between 10.3% to 70.1%, and the countervailing duties between 3.9% to 17.2%, will continue for the next five years.
The tariffs have helped European companies, particularly those who make more entry-level e-bikes, establish themselves in the market and has increased manufacturing of these goods across the continent. The main idea is that European brands are not constantly undercut by Chinese imported goods.
Why are Chinese e-bikes often so cheap?
It boils down to a few things, really. For a start, the wages are generally lower compared to someone in a similar position within Europe. There are also state subsidies at play, and plenty of economies of scale, as China is a leading manufacturing county for EV goods – including sourcing raw materials for batteries as well as manufacturing e-bikes and components at larger scales.
What does it mean for, you, the consumer?
For now, if you’re in the EU or the UK, nothing will change. The duties were first imposed in 2019, and the UK government also decided to impose these duties on Chinese e-bike imports. Last year, the Trade Remedies Authority asked for public opinion on the matter, and whether they should extend the duties beyond the original term, like the EU. If they did drop the duties, it would increase the potential for a flood of Chinese e-bike imports, which comes with its own pros and cons.
That being said, the general public education around what an e-bike actually is (and no, we’re not talking about e-motorbikes), has not been helped by things like direct import conversion kits that exceed the UK e-bike regulations for use on public roads.
So will the UK stick to the same track as the EU? If a report from the Trade Remedies Authority is any indication, then maybe they wont. Last May the TRA published a report saying that keeping them in place would not benefit the UK economy, and getting ride of them could net the UK £51m a year, save £260 on the average price of an e-bike, and increase e-bike imports by around 31,000. Not everyone agrees though. Brompton CEO, William Butler-Adams, is against the idea, saying that removing tariffs will ruin his business as well as other UK e-bike manufacturers, putting jobs at risk. Not to mention the potential for a flood of cheap, unregulated imports that don’t meet crucial safety standards. So far no decision has been made, but with the recent decision to abandon plans to legalise more powerful motors, and a general cooling of attitudes towards e-bikes, it’s looking more likely that the tariffs will remain in place.