AUTONEWS

Europe wants to kill China's electric bicycles

Trade with China has long been a problem, with Chinese not always playing 'clean' to get more trade benefits, especially through the subsidization of certain products. The latest example has two wheels and is electric, with the European Union (EU) having decided to tax 79.3% of the bicycles of this type coming from the Chinese market.
Increasingly popular e-bikes, not only among private individuals seeking an alternative means of urban transport, but also among the companies that exploit them, are bound to increase in price soon. Produced mostly in China, they should see the value by which they are traded rise at the same pace as the new 79.3% tax.
According to the European Union, most of the Chinese manufacturers will be penalized with the maximum rate, with others that will bear lower tax burdens, such as the Bodo Vehicle Group, whose electric bikes will pay 73.4%, from the Yadea Technology Group (62, 9%) and Giant (24.6%).
In all, the EU measure will cover about 70 Chinese manufacturers, who were the subject of an investigation, in order to find out who was dumping. Those who were caught in this practice, or refused to respond to the questionnaire, were "considered" with the maximum rate
The EU's analysis of this problem, in collaboration with the Chinese authorities, concluded that some e-bike manufacturers were receiving illegal state support, according to the report presented by European legislators. The EU action was due to a complaint from the manufacturers of these vehicles of the Old Continent, who argued that they were victims of an unfair war.
The same problem has already been treated similarly in the US, and when it was feared that the new tax (of 25%) would result in a considerable increase in the retail price of e-bikes, the increase was so slight that they continued to be the most affordable. It remains to be seen what will happen with a tax three times higher, as it will be implemented by the EU.