Tag Archive: china

  1. Join the Ad Hoc Group in Opposing Extension Measures on E-Bikes from China

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    Is your company involved in any of the following:

    • Importing electric bicycles, electric cargo bikes, or speed pedelecs from China and paying duties?
    • Importing electric bikes, electric cargocycles, or speed pedelecs from a non-EU country OTHER THAN China?
    • Importing components from China for the assembly of electric bikes, electric cargocycles, or speed pedelecs within the EU?

    Is your company facing:

    • Investigation by national customs services and/or OLAF?
    • Accusations of circumventing measures against China?
    • Legal action for circumventing measures against China?
    • Sentencing or acquittal for circumventing measures against China?

    If so, we strongly recommend that you become a part of the Ad Hoc Group established by LEVA-EU to collectively oppose the potential extension of these measures.

    What will the Ad Hoc Group do?

    • Request recognition from the European Commission as an interested party.
    • Submit joint comments on the Commission’s review.
    • Seek a hearing from the European Commission, allowing companies to express their views.
    • Provide assistance from a specialized lawyer.
    • Communicate the group’s activities to the press and on social media.
    • Lobby other influential entities on this matter.

    How to Participate?

    • A modest contribution, based on the number of employees in your company, is required for participation in the Ad Hoc Group.
    • Participation can be kept confidential.
    • LEVA-EU membership is not a prerequisite for joining the Ad Hoc Group.
    • LEVA-EU members receive a discount on the contribution.

    Meeting Details:

    • The Ad Hoc Group will conduct multiple meetings, with the first scheduled for February 15, both in-person in Brussels and online.
    • If the Commission grants a hearing, it will be held in-person in Brussels; all other meetings will be accessible online.

    How to Join?

    Your involvement will make a difference in challenging the extension of the measures affecting the European electric cycle industry.

  2. LEVA-EU Establishes Ad Hoc Group for EU Companies to Counter EU Commission’s Review of Measures against E-Cycles from China

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    Last week, the European Commission announced the review of the trade defence measures against electric cycles from China. The review has been requested by EBMA, who wants the measures to be extended for another 5 years. However, over the past 5 years, LEVA-EU has collected numerous testimonies from European companies that have suffered serious damage due to the measures. Some have even gone bankrupt.

    It may be in the interest of a small minority of EU companies to continue the measures, but for the majority it is a constant threat and a major obstacle. In response to this, LEVA-EU is taking decisive action by establishing an ad hoc group to unite with affected companies and jointly challenge the potential extension of the trade defense measures. This collaborative effort aims to represent the interests of the broader industry and address the concerns of companies that have experienced adverse effects of the measures.

    LEVA-EU will apply for the ad hoc group to be granted interested party status, which will allow the group to comment on the requested review and also request a hearing with the Commission. In all this, the group will also be supported by a specialized lawyer. LEVA-EU will further support the companies in the ad hoc group with lobbying and communication on the matter.

    The more companies join the group, the greater the chance that opposition to the measures will be taken into account. LEVA-EU therefore warmly calls on all companies that are damaged in some way by the measures or that oppose the measures, to register for the ad hoc group. A first meeting of the group is planned for Thursday, 15 February, in Brussels. The group is open to all companies, regardless of whether they are members of LEVA-EU. You can register by expressing your interest in a simple email to LEVA-EU manager Annick Roetynck, annick@leva-eu.com. If you wish, you can also call her for further information: +32 475 500 588

    It has long been clear that the focus of the EBMA is less on preventing dumping and injury recurrence, than on fostering protectionism, primarily led by a few large groups within the EU. All this is happening under the guise that the trade defence measures will result in return of production to Europe, which in turn will result in the creation of millions (sic) of jobs. Both EBMA and the Commission are of course wisely silent about the fact that trade defence legislation, by its nature, is not designed with the goal of reshoring industries nor fostering job creation. Let alone that they care at all about the jobs that have already disappeared in the EU due to the measures.

    The current measures disproportionately impact mainly smaller entrepreneurs, who inadvertently fall victim to the immense complexity of the legislation. That complexity is partly due to the interweaving between the measures against the electric cycles with the measures on essential bicycle components. LEVA-EU also raises concerns about EBMA not shying away from providing companies with incorrect legal information, which raises serious questions about integrity.

    A potential 5-year extension of the trade defence measures is predicted to exacerbate the challenges faced by many more European companies, leading to reduced supply, which will in turn lead to significant job losses in the retail sector. It will also lead to increased prices, and a stifling of innovation. LEVA-EU emphasizes that the measures primarily serve the interest of a few large groups, who are merely interested in safeguarding their big cash cow, i.e. the electric bicycle with pedal assistance up to 25 km/h and 250W.

    The consequences extend beyond the financial burden on European citizens, to include countless European companies that are now or will soon come under fire. Moreover, the measures prevent many more European companies to enter the market, since a new company in the EU cannot start up unless it pays anti-dumping duties for an indefinite period, without any prospect of any refund.

    Last year the European Union had the dubious honour of commemorating 30 years (!) of anti-dumping measures against conventional bicycles from China. This “milestone” prompts questions about the effectiveness of European trade defence measures and the resilience of the “Union Industry”. The measures against electric bicycles will never last 30 years, because by then the electric bicycle sector will simply have been wiped off the map, thanks to the so-called “Union Industry” and EBMA. That is precisely why it is important that at least someone tries to provide some resistance. Five more years of trade defence measures on electric cycles from China will never foster an environment conducive to fair competition, innovation and sustainable growth of the sector in Europe.

    Annick Roetynck,
    LEVA-EU Manager

    Below are the links to relevant Commission publications in the Official Journal:
    https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400802
    https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400798

  3. LEVA-EU Gears Up to Counter European Commission’s Review of Trade Defence Measures against Electric Cycles from China

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    In a widely anticipated move, the European Commission has officially granted EBMA’s request to review the trade defence measures against electric cycles from China, with a view to an extension of 5 years. The basis for this request is, entirely as expected, the fact that the expiry of the measures would be likely to result in continuation of dumping and recurrence of injury to the Union Industry. LEVA-EU is gearing to respond. The organization warns for the potential impact of 5 more years of measures on European companies and is mobilizing efforts to address the serious concerns arising from the potential extension.

    The European Bicycle Manufacturers Association’s (EBMA) request for an extension comes from only one faction of the so-called Union Industry. Another segment of that Industry, along with numerous European companies assembling electric cycles outside both Europe and China, are already experiencing significant adverse effects from the existing measures. Some businesses have already effectively succumbed to these measures, which demonstrates the tangible and widespread damage inflicted upon the industry.

    In response, LEVA-EU plans to establish an ad hoc group for companies that are assembling their electric cycles within the EU or outside the EU and China, and are suffering substantial harm from the measures. It has long been clear that the focus of the EBMA is less on preventing dumping and injury recurrence, than on fostering protectionism, primarily led by a few large groups within the EU.

    All this is happening under the guise that the trade defence measures will result in return of production to Europe, which in turn will result in the creation of millions (sic) of jobs. Both EBMA and the Commission are of course wisely silent about the fact that trade defence legislation, by its nature, is not designed with the goal of reshoring industries nor fostering job creation. Let alone that they care at all about the jobs that have already disappeared in the EU due to the measures.

    The current measures disproportionately impact mainly smaller entrepreneurs, who inadvertently fall victim to the immense complexity of the legislation. That complexity is partly due to the interweaving between the measures against the electric cycles with the measures on essential bicycle components. LEVA-EU also raises concerns about EBMA not shying away from providing companies with incorrect legal information, which raises serious questions about integrity.

    A potential 5-year extension of the trade defence measures is predicted to exacerbate the challenges faced by many more European companies, leading to reduced supply, which will in turn lead to significant job losses in the retail sector. It will also lead to increased prices, and a stifling of innovation. LEVA-EU emphasizes that the measures primarily serve the interest of a few large groups, who are merely interested in safeguarding their big cash cow, i.e. the electric bicycle with pedal assistance up to 25 km/h and 250W.

    The consequences extend beyond the financial burden on European citizens, to include countless European companies that are now or will soon come under fire. Moreover, the measures prevent many more European companies to enter the market, since a new company in the EU cannot start up unless it pays anti-dumping duties for an indefinite period, without any prospect of any refund.

    Last year the European Union had the dubious honour of commemorating 30 years (!) of anti-dumping measures against conventional bicycles from China. This “milestone” prompts questions about the effectiveness of European trade defence measures and the resilience of the “Union Industry”. The measures against electric bicycles will never last 30 years, because by then the electric bicycle sector will simply have been wiped off the map, thanks to the so-called “Union Industry” and EBMA. That is precisely why it is important that at least someone tries to provide some resistance. Five more years of trade defence measures on electric cycles from China will never foster an environment conducive to fair competition, innovation and sustainable growth of the sector in Europe.

    Annick Roetynck,
    LEVA-EU Manager

    Below are the links to relevant Commission publications in the Official Journal:
    https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400802
    https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C_202400798

  4. Last call for LEVA-EU meeting on dumping, Thursday 16 November in Brussels

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    The possible revision of the trade defence measures against e-bikes from China is the direct reason for LEVA-EU to convene a meeting on Thursday, 16 November in Brussels. The trade association for light electric vehicle businesses argues that a new period of 5 years of measures would continue to cause unprecedented damage to the electric bicycle sector in Europe. That is why LEVA-EU wants to discuss with the affected companies and their lawyers how the current immense problems can be tackled jointly and how a possible request for review can be jointly responded to.

    The meeting is open to any company which currently is or has been affected by actions by customs and/or OLAF. Both LEVA-EU members and non-members are welcome. The companies and their lawyers can participate in the meeting free of charge, provided they first register with LEVA-EU manager, Annick Roetynck, annick@leva-eu.com, tel. +32 475 500 588.

    The companies are invited to submit a short report of their case to LEVA-EU, which will allow to organize the consultation around a few “cases“. That consultation will be aimed at achieving a possible joint approach to all customs/OLAF actions as well as to the possible review of the dumping measures. The meeting is also intended to offer lawyers the opportunity to exchange ideas with colleagues about argumentation and defence in various cases.

    The companies known to LEVA-EU as being under attack have been invited directly. All other companies and/or their lawyers are urged to register with LEVA-EU as soon as possible, upon which they will receive a direct invitation.  All companies involved are also requested to pass on the invitation for this meeting to other companies that are under attack.

    In the meantime, MLEX reports that “EU manufacturers” have effectively requested the Commission to extend the anti-dumping and countervailing duties on electric bikes from China for another 5 years. According to MLEX, “the companies asking for a review, argue that without import restrictions, there’s a risk Chinese rivals will resume distorted imports in Europe and hurt EU businesses.” The Commission is expected to decide by 19 January whether to open expiry reviews.

    Further background information on this issue can be found in the following articles:
    https://leva-eu.com/join-leva-eu-meeting-on-the-devastating-anti-dumping-measures-against-e-bikes/
    https://leva-eu.com/leva-eu-calls-for-evidence-of-damage-to-eu-e-bike-companies-by-dumping-measures/
    https://leva-eu.com/whilst-eu-commission-claims-no-anti-dumping-on-parts-for-e-bikes-eu-e-bike-assemblers-paying-millions-of-duties-fines-and-guarantees/

  5. Join LEVA-EU for meeting on damage to EU e-bike companies by dumping measures

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    On 16 November 2023, LEVA-EU will be hosting a meeting in Brussels for EU e-bike companies who are being attacked by the customs, by OLAF or both, following the anti-dumping and countervailing measures against electric bikes from China. We have reports of companies in virtually all member states being threathened with duties, fines and even prison sentences for company managers, for alleged violation of the trade defence measures.

    LEVA-EU invites all companies who are under attack as well as their lawyers to a meeting in Brussels on Thursday 16 November. The purpose of the meeting is two-fold. We want to consult with the companies on a plan of action to systematically raise the issues with the European Commission, Parliament, Olaf and customs services. Secondly, we want to enable the lawyers defending the attacked companies to exchange information and expertise to optimise their defence.

    This week, LEVA-EU will send out direct invitations to those companies that have already contacted the association with respect to their problems with customs and/or OLAF. All other companies who have not been in touch with LEVA-EU yet, are invited to report to the organization by phone +32 475 500 588 or by email annick@leva-eu.com. The meeting is open to both LEVA-EU members and non-members.

    Further information about the meeting of 16 November will follow but those interested in attending are invited to contact LEVA-EU Manager Annick Roetynck as soon as possible by phone, +32 475 500 588 or by mail, annick@leva-eu.com.

    Before the Summer, the Commission has announced the expiry of the measures against electric bicycles from China in the Official Journal. LEVA-EU is anticipating a review and potential renewal of the measures. In the meantime, the Kafkaesque legislation and the multiple actions by national customs services and OLAF, cause unacceptable disruption and damage to many European companies. Ahead of the anticipated review, LEVA-EU called a while ago on all companies affected by the measures for evidence. The response was so overwhelming that LEVA-EU now decided to invite all affected parties to a meeting in Brussels on 16 November.

    LEVA-EU’s call for evidence resulted in a tsunami of companies calling at LEVA-EU’s booth at Eurobike to report on their ordeal. The stories are harrowing and the measures customs are threatening with are such that they will simply destroy businesses. The actions are taking place across Europe as well as in countries outside Europe, including Taiwan, South Korea, Thailand, Turkey, … The allegations are very diverse: circumvention of dumping measures against electric bikes assembled outside the EU, circumvention through assembly in the EU, wrong application of rules of origin, wrong HS-classification, circumvention of anti-dumping duties on essential bicycle parts, wrong use of the Commission’s exemption, assembly without end-use authorisation, assembly of parts not within time limit or simply “fraud“. Entrepreneurs are threatened not only with overdue duties and staggering fines but worse, imprisonment. One of them has effectively been detained for several weeks.

    LEVA-EU has been working relentlessly to explain all legislation pertaining to this e-bike case. In meetings with the European Commission, we have explained the many aberrations an discrimination in the rules, the net result of which being that it’s virtually impossible to start-up a new e-bike business in Europe, while many existing businesses are under threat due to unfair rules. Ahead of the review, we will continue to do so. To this end, we are in the process of drawing up an inventory of as many cases as possible of European companies that are being investigated by customs and/or OLAF.

  6. LEVA-EU calls for evidence of damage to EU e-bike companies by dumping measures

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    The Commission has announced the expiry of the measures against electric bicycles from China in the Official Journal. LEVA-EU is anticipating a review and potential renewal of the measures. In the meantime, the Kafkaesque legislation and the multiple actions by national customs services and OLAF, cause unacceptable disruption and damage to many European companies. Ahead of the review, LEVA-EU calls on all companies affected by the measures for evidence.

    In the EU Official Journal of 2 May, the European Commission has published a notice of the impending expiry of the anti-dumping and countervailing measures against electric bicycles from China. This notice only results from normal procedural rules. The deadline for the current measures is 19 January 2024. Article 11.2 of the basic Dumping Regulation stipulates: “A definitive anti-dumping measure shall expire five years from its imposition (…), unless it is determined in a review that the expiry would be likely to lead to a continuation or recurrence of dumping and injury. Such an expiry review shall be initiated on the initiative of the Commission, or upon a request made by or on behalf of Union producers, and the measure shall remain in force pending the outcome of that review.

    It seems a foregone conclusion that EBMA will request a review. However, the main question is what arguments the organisation will use to extend the measures for another five years.

    In the past 4.5 years, EBMA has developed a surging discours on bringing industry back to Europe and especially on the large number of jobs that will come with it. The whole campaign culminated in a European Parliament Motion for a resolution on developing an EU cycling strategy which, very triumphantly announced that “the EU cycling ecosystem can scale up to 2 million jobs by 2030”.

    Much, of course, depends on the definition of the ‘EU cycling ecosystem”, but the fact is that we are still very far from those targeted two million jobs. In a report on employment in the (e)bike business, CONEBI concluded that there were 155,00 jobs in 2021. Incidentally, it appears that the violins in the (e)bike business are not quite tuned in unison. In their 2022 market report, the German (e)bike industry association stated: “The ZIV anticipate no large-scale relocation of production (reshoring) to Europe at the current time. However, it does expect production in The EU to grow in importance.

    And, contrary to what EBMA might claim, the anti-dumping measures are all but helpful to achieve the objective of 2 million jobs, since they are a major obstacle in starting up new companies, whilst causing extensive damage to existing companies in the European Union.

    EBMA shouts so loudly that the measures are absolutely necessary for “reshoring for better sustainability, more EU green jobs and EU investments/innovation”, that everyone, including the EU authorities seem to forget what dumping is really about. It is of course not about reshoring, green jobs nor about investments or innovation. The WTO defines dumping as “in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country.” Another important element of dumping is the injury it causes to the EU-industry. And here lies the crux of the matter: what is the European ebike industry? In the end, everyone does the same thing: buying parts and assembling them into electric bikes. The net result of the measures against China however is that one part of the European ebike “industry” proffers from the measures, while another part is getting severely injured.

    The anti-dumping measures on electric bicycles from China have nothing to do with “a situation of international price discrimination“. They prove to be a huge barrier for those European companies that have had to find an alternative to assembly in China and equally for all those trying to start a new e-bike business in Europe since the introduction of the measures.

    As for assembly in Europe, anti-dumping measures have become completely intertwined with the extension of anti-dumping measures on bicycle parts from China. Furthermore, the Commission has created a highly discriminatory legal distinction between companies that assemble both conventional and electric bicycles and those that assemble electric bikes only. Furthermore, the Commission has recently made it quite a bit more difficult to obtain an exemption for assembly of conventional and electric bicycles. The entire legislation is so complex that no manufacturer can be assumed to understand the rules on their own. Start-ups are forced to pay anti-dumping duties on electric bike components for quite a while, before obtaining the necessary authorization to be released from duties on components. Who can afford this?

    However, after having paid duties on e-bike components, which according to Sabine Weyand, Director General of DG Trade are not subject to anti-dumping duties, they are then subject to extensive financial guarantees.  In addition, shortly after introducing dumping duties on e-bikes from China, the European Commission also changed the rules of origin for imports of electric bikes from non-preferential origin countries overnight.

    In the meantime, both national customs authorities and OLAF are constantly investigating companies, electric bike imports and assembling facilities in and outside Europe. The companies involved usually have no idea what they are suspected/accused of, nor are they given any information about the progress of the case. Some, meanwhile, have been waiting for news for three years and live with the threat of fines that may push them into bankruptcy, sometimes even imprisonment!

    LEVA-EU has been working relentlessly to explain all legislation pertaining to this e-bike case. In meetings with the European Commission, we have explained the many aberrations an discrimination in the rules, the net result of which being that it’s virtually impossible to start-up a new e-bike business in Europe, while many existing businesses are under threat due to unfair rules. Ahead of the review, we will continue to do so. To this end, we want to draw up an inventory of as many cases as possible of European companies that are being investigated by customs and/or OLAF.

    So, are you or have you been investigated by customs and/or OLAF and are you or have you been accused of for instance:

    • Buying from a European supplier who is suspected of circumventing anti-dumping duties on electric bicycles from China
    • Not paying anti-dumping duties on bike components for e-bike assembly
    • Using incorrect HS codes to avoid anti-circumvention duties on bicycle components
    • Assembling in the EU or buying from an assembler without an exemption or end-use authorization
    • Illegal application of rules of origin for e-bikes that are produced outside the EU and China

    We kindly request you to report your problems to LEVA-EU. We guarantee absolute confidentiality. Cases may be reported to LEVA-EU Manager Annick Roetynck by phone, +32 475 500 588 or by mail, annick@leva-eu.com. Alternatively, you can also book an appointment at the forthcoming Eurobike, here: https://calendly.com/annick_leva-eu/eurobike-meeting

    Photo by John Simmons on Unsplash

  7. Greenway completes move into new Taizhou HQ

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    The LEVA-EU member, who produces battery packs for use in LEV projects, has moved into a new state-of-the-art headquarters.

    The new property, based in Taizhou, China, has a footprint of 23,000 square meters, with a total construction area of 100,000 square meters and a workshop area of approximately 64,000 square meters. Alongside existing key staff, the HQ will contain Greenways’ new R&D and Innovation centre, ensuring the company’s lithium-ion battery products are of the highest quality.

  8. Johnson Electric acquires a majority stake in Pendix GmbH, provider of electric drives and e-bikes

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    Source: Johnson Electric

    Johnson Electric announces the acquisition of an 80% stake in LEVA-EU member Pendix GmbH, a well-established technology-driven market player in the e-bike industry. Based in Zwickau, Germany, Pendix designs, manufactures, and brings complete electric cargo bikes and electric drives for bicycles to market. Pendix’s offering combines leading innovation with an extremely high level of product reliability.

    By welcoming Pendix as part of Johnson Electric Group, we are expanding our e-mobility offering and entering the e-bike market. With Johnson Electric’s industrial scale and global reach together with Pendix’s expertise in the e-bike sector, we are positioning ourselves into a fast-growing and innovative industry,” said Dr. Patrick Wang, Chairman and CEO of Johnson Electric.

    Our engineering center in Dresden, Germany, is in close proximity to Zwickau. This will enable close collaboration with the highly skilled Pendix team. We’re excited about expanding into the e-bike sector, and by doing so we hope to create a more sustainable future for personal mobility,” added Austin Wang, Senior Vice President of Johnson Electric.

    All Pendix founders, who started the company in 2013, will remain shareholders of Pendix and continue in their active management roles to lead the business growth plans.

    We are extremely pleased to join such a reputable company as Johnson Electric and are convinced that our common passions for innovation and engineering perfection together with a strong cultural fit are a great foundation for reaching the next level of success,” commented Thomas Herzog, co-founder and CEO of Pendix GmbH.

  9. EU Court annuls anti-dumping & anti-subsidy Regulations for Giant

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    End of April, the EU General Court has ruled that the anti-dumping and anti-subsidy Regulations on imports of electric bicycles from China must be annulled in so far as it concerns the applicant, i.e. Giant.

    The judgment is clear and simple. The Commission has made a methodological error in the determination of price undercutting which cannot be overcome. This error invalidates the causal link between the alleged dumped imports and the injury to the EU industry. As a result, the Court has annulled both the anti-dumping and anti-subsidy Regulations for Giant.

    More importantly, the Court has stated that the methodological error has a bearing on the calculation of price undercutting established in respect of the other sampled exporting producers. In other words, the Regulations are in theory not only invalid for Giant but for all parties involved. However, only Giant took the case to Court and, therefore, the Court can only rule for Giant.

    This judgment proves how shaky the Commission’s evidence in this case was. And because the evidence was so shaky, the Court had no trouble in overturning it.

    LEVA-EU is currently seeking legal advice on the wider implications of this judgment. The Anti-Dumping and Anti-Subsidy Regulations in question continue to have a very negative impact on European companies. Partly because of the intertwining with the anti-circumvention rules on bicycle parts, it is nearly impossible to start up a new e-bike business in the EU. At the same time, life is also continually made difficult for e-bike importers and assemblers outside Europe and China.

    The court has exposed part of the injustice. Hopefully, this verdict will lead to the elimination of all other trade barriers resulting from these two fundamentally flawed EU regulations.

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