The UK’s Trade Remedies Authority (TRA) has proposed extending anti-dumping measures on bicycles and bicycle components produced in China until August 30, 2029. This move is projected to benefit UK manufacturers by up to £9 million annually.
Anti-dumping duties allow countries or unions to take action against goods sold below their "normal value," which typically corresponds to the price of similar goods in the exporter’s domestic market.
The preliminary findings of an investigation, set to be published on July 31, 2025, originated from a transitional review initiated on August 23, 2024. The review focuses on bicycles and essential components produced in China, including frames, wheels, handlebars, and brake parts. It also encompasses products routed through Cambodia, Indonesia, Malaysia, Pakistan, the Philippines, Sri Lanka, and Tunisia.
China is the world's largest bicycle producer, accounting for approximately 60% of global output, with production exceeding 48 million units in 2023. Evidence suggests that its production capacity continues to expand. The UK sells about 1.6 million bicycles annually, with imports from China making up approximately 24% of its total bicycle imports during the review period.
TRA supports the extension of anti-dumping duties on Chinese bicycles and parts until 2029. These duties currently range from 19.2% to 48.5%, depending on the exporter, and their continuation aims to curb low-priced dumping practices, thus protecting the UK bicycle industry from unfair international trade. This sector includes numerous small and medium-sized enterprises employing thousands. If the duties were lifted, the previously confirmed dumping behaviors, particularly in the context of China's expanding production capacity, could re-emerge, jeopardizing the UK bicycle industry.
Anti-Dumping Cases: The EU Experience
The European Union has faced similar challenges. Since 2019, the EU has imposed anti-dumping duties (ranging from 10.3% to 70.1%) and countervailing duties (between 3.9% and 17.2%) on Chinese electric bicycles. These measures effectively mitigated the impact of subsidized and dumped Chinese products on EU entry-level and mid-range market manufacturers, leading to greater investment in technology development and sustainable production among European businesses. Earlier this year, on January 25, the European Commission announced the extension of these duties for an additional five years, a crucial step for ensuring the long-term viability of the EU electric bicycle industry, which directly employs around 12,000 individuals and supports the EU's green transition and sustainable transport goals.
During Brexit, the anti-dumping and countervailing measures on Chinese imported folding and non-folding electric bicycles were transitioned and currently stand at 10.3% to 70.1% and 3.9% to 17.2%, respectively.
In early February, the UK Secretary of State for Business and Trade endorsed TRA's recommendation to remove anti-dumping and countervailing measures on non-folding electric bicycles, which represent 95% of the UK electric bicycle market. TRA suggested that lifting these duties would allow consumers to purchase products at lower prices, with average savings of approximately £200 per person.
Implications for Chinese Exporters
The existing anti-dumping duties, which currently range from 19.2% to 48.5%, have significantly raised sales prices for Chinese bicycle products in the UK market. This situation poses a considerable challenge for small and medium-sized Chinese bicycle enterprises targeting the UK market. To avoid anti-dumping duties, some established Chinese suppliers may expedite the transfer of production capacity overseas. Notably, the review's coverage includes products routed through third countries like Cambodia and Indonesia, indicating that UK authorities are taking precautions against "country washing." Consequently, Chinese companies may need to establish genuine overseas production facilities or deepen collaborations with local firms to sustain exports, a move that could increase operational costs and complexity.
Since the EU began imposing anti-dumping duties on certain Chinese electric bicycle manufacturers in 2019, some companies have responded by establishing production facilities in Europe. Notable examples include Giant’s two factories in Hungary and Bafang’s motor plant in Poland. Other manufacturers are opening plants in Bulgaria, the Czech Republic, and Portugal, while Yamaha has started producing electric bicycle motors in France and Trek operates a factory in Germany for the Villiger bicycle brand acquired in 2003.
China's bicycle manufacturers face a pertinent question: in the face of a diminishing reliance on competitive pricing strategies for entering overseas markets, is a strategic transformation necessary? This shift may require an increased focus on enhancing product quality, technological sophistication, and brand value. For example, investing in high-performance bikes, high-end electric bicycles, or offering superior after-sales services could persuade consumers to accept higher prices, helping Chinese firms adapt to a challenging international market landscape.
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