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Bicycle Racing News and Opinion,
Wednesday, November 21, 2018

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2018 Tour de France | 2018 Giro d'Italia

Let us dedicate ourselves to what the Greeks wrote so many years ago: to tame the savageness of man and make gentle the life of this world. - Robert Kennedy

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EU’s document on E-Bike dumping accuses China of state interference and distorting competition

Bike Europe sent me this industry update:

BRUSSELS, Belgium – Published last Thursday, the “General Final Disclosure Document” on “Case AD643 – Anti-dumping proceeding concerning imports of electric bicycles originating in the People’s Republic of China” brings to light the motivations that lead to the European Union’s intention to impose high dumping duties on e-bikes imported from China. The European Commission’s motivations vary from state interference by China leading to distorting competition bringing significantly lower than average prices of imports which led to findings of substantial undercutting and dumping.

What the 32 paged Disclosure Document also reveals are the very detailed counter arguments brought forward in this case by the CCCME (China Chamber of Commerce for Import and Export of Machinery and Electronic Products); the Collective of European Importers of Electric Bicycles as well as individual companies like Giant China. Giant China in particular pushed for Market Economy Treatment (MET) in this case which was rejected by the European Commission.

The rejection of Giant China’s Market Economy Treatment by the European Commission and the reasoning behind it, brings to light China’s State interference in various areas. The Disclosure Document says to have found “Significant State interference in relation to the aluminium market” which resulted in significant distortion. The European Commission’s investigation also brought about that “Giant effectively did not pay for its land use rights.” And that “The preferential tax rate was a financial incentive of a quasi-permanent open-ended character which could also serve the purpose of attracting capital at discounted rates, thereby significantly distorting competition over a long period of time. The Commission also concluded that the tax deduction for R&D expenses was recurrent and not limited in time and therefore would have similar effect.”

The European Commission also concludes in its General Final Disclosure Document on Case AD643 that “The average prices of imports from the PRC have been constantly and significantly below the average prices from any other source of supply (…) which led to findings of substantial undercutting and dumping.”

The Document further says “Whilst the investigation established the existence of a significant volume of imports at dumped and undercutting prices, it also established the strength in demand in the electric bicycle market which somewhat limited the negative effects on the profit margin of the Union Industry. (…) Nevertheless, the Commission observed that the profit margin of the Union industry declined in all years but one and was overall at depressed levels. Furthermore, the conclusion of material injury is not based on a single indicator. Other indicators, of which some of financial nature such as cash flow, were analysed together with the evolution of the profit margin to conclude to a situation of material injury.”

You can read the entire story here.

BMW to become official car of Deceuninck-Quick Step team

Here's the team's release:

Patrick Lefevere, CEO of Deceuninck – Quick-Step Team, was on hand at the BMW Belux headquarters in Bornem, last Friday, to receive the keys to the first of 15 vehicles that will be used by the Belgian-based team from next season. The fleet of cars will be made up of nine BMW X1s Drive 18i' and six BMW 520i Touring, as part a multi-year agreement, that will be supported by the Le Couter and Lemmens-Le Couter BMW dealership. The partnership will also see Deceuninck – Quick-Step Team use the brand-new BMW X7, which is due to be launched in March and will see them be amongst the first to take ownership of the exciting new model.

The premium BMW vehicles will be used by the UCI #1 ranked team, winner of 73 UCI races in 2018, on the road both before and after events, as well as utilising reliability and comfort with which they are synonymous, to offer their riders crucial support during the plethora of races that make up the calendar. The Deceuninck – Quick-Step Team staff will also use the innovative vehicles to support them logistically while on the road. The BMW X7 will amongst others be used for the exclusive VIP services offered by the high performance team.

When speaking of the new partnership, Patrick Lefevere said, "We are really pleased to have BMW join us as our new Official Car Partner. We are always looking for innovative ways to improve our setup and support the team. However, we believe that having an Official Car Partner like BMW, that is as passionate about innovation as we are, can help to deliver even more success and satisfactions."

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