Commission Implementing Regulation (EU) 2025/114 of 23 January 2025 imposing a definitive countervailing duty on imports of electric bicycles originating in the People’s Republic of China following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports from countries not members of the European Union (1) (‘the basic Regulation’), and in particular Article 18 thereof,

Whereas:

(1) By Commission Implementing Regulation (EU) 2019/72 (2) (‘the original Regulation’), the European Commission (‘the Commission’), imposed a countervailing duty on imports of electric bicycles originating in People’s Republic of China (PRC or ‘the country concerned’ or ‘China’). The countervailing duties currently in force range from 3,9 % to 17,2 % (‘the original measures’). The investigation that led to the imposition of the original measures will hereinafter be referred to as ‘the original investigation’.

(2) Following the judgment of the General Court in case T-243/19, the countervailing duties were reimposed on Giant Electric Vehicle (Kunshan) Co., Ltd in March 2023 by Commission Implementing Regulation (EU) 2023/610 (3). The re-imposed duty was set at the same level as in the original Regulation. Hence, the countervailing duty rates currently in place are those that were established by Implementing Regulation (EU) 2019/72.

(3) By Commission Implementing Regulation (EU) 2019/73 (4), the Commission also imposed definitive anti-dumping measures on imports of electric bicycles originating in China. The anti-dumping duties currently in force range from 9,9 % to 70,1 %.

(4) On 17 January 2024, the Commission initiated an expiry review with regard to imports to the Union of electric bicycles originating in the People’s Republic of China on the basis of Article 18 of the basic Regulation. It published a Notice of Initiation in the Official Journal of the European Union (5) (‘the Notice of Initiation’).

(5) The Commission initiated the investigation following a review request lodged on 16 October 2023 by the European Bicycle Manufacturers Association (‘the request’ and ‘the applicant’) on behalf of the Union industry of electric bicycles in the sense of Article 10(6) of the basic Regulation. The request contained evidence of likelihood of continuation of subsidisation and recurrence of injury to the Union industry that was sufficient to justify the initiation of the investigation.

(6) Prior to the initiation of the expiry review, the Commission notified the Government of China (‘GOC’) (6) that it had received a properly documented request, and invited the GOC for consultations in accordance with Article 10(7) of the basic Regulation. The GOC did not respond and therefore consultations did not take place.

(7) The investigation about subsidisation and injury covered the period from 1 January 2023 to 31 December 2023 (‘review investigation period’ or ‘RIP’). The examination of trends relevant for the assessment of the likelihood of a continuation or recurrence of injury covered the period from 1 January 2020 to the end of the review investigation period (‘the period considered’).

(8) In the Notice of Initiation, interested parties were invited to contact the Commission in order to participate in the investigation. In addition, the Commission specifically informed the applicant, all known Union producers, the known producers in PRC as well as the authorities of the PRC, known importers, users, as well as associations known to be concerned about the initiation of the expiry and invited them to participate.

(9) Interested parties had an opportunity to comment on the initiation of the expiry review and to request a hearing with the Commission and/or the Hearing Officer in trade proceedings. An ad hoc Group, on behalf of 8 companies in the Union which assemble e-bike parts imported from China and other third countries, came forward and provided comments. These comments did not concern the initiation as such and were addressed in the section 6 on Union interest below. This group also requested a hearing with the Commission, which took place on 30 April 2024.

(10) In the Notice of Initiation, the Commission stated that it might sample the interested parties in accordance with Article 27 of the basic Regulation.

(11) In the Notice of Initiation, the Commission stated that it had decided to limit the investigation to a reasonable number of Union producers by applying sampling. The Commission selected the sample on the basis of the highest representative quantity of production which could reasonably be investigated within the time available.

(12) In accordance with Article 27 of the basic Regulation, the Commission invited interested parties to comment on the provisional sample. No comments on the provisional sample were received. The sample was considered representative of the Union industry.

(13) To decide whether sampling was necessary and, if so, to select a sample, the Commission asked unrelated importers to provide the information specified in the Notice of Initiation.

(14) No unrelated importer replied to the sampling form.

(15) To decide whether sampling was necessary and, if so, to select a sample, the Commission asked all known producers in the PRC to provide the information specified in the Notice of Initiation. In addition, the Commission asked the Mission of the People’s Republic of China to the European Union to identify and/or contact other producers, if any, that could be interested in participating in the investigation.

(16) Only two exporting producers from the People’s Republic of China provided a sampling reply and sampling was therefore not deemed necessary. However, these two companies accounted together for less than 0,1 % of the Chinese electric bicycle industry in terms of (i) exports to the Union, (ii) domestic sales and, (iii) Chinese production capacity in the review investigation period. The Commission therefore considered that those two companies could not be considered representative of the Chinese electric bicycle industry for the purpose of the expiry review investigation and that their company-specific information was not susceptible to form a basis for representative findings regarding all exports from the PRC to the Union.

(17) Accordingly, the Commission concluded that cooperation from electric bicycle producers in the PRC was insufficient to make representative findings and informed the two companies, as well as the authorities of the People’s Republic of China, that the Commission intended to apply Article 28 of the basic Regulation and base its findings on continuation or recurrence of subsidy and injury with regard to imports from the People’s Republic of China on facts available.

(18) The Commission invited the two companies that had provided sampling reply to contact the Commission services in case they intended to fill out a questionnaire reply notwithstanding their lack of representativity of the e-bike industry the PRC (see above). At the initiation of the investigation a copy of the questionnaires was made available in the file for inspection by interested parties and on DG Trade’s website. No questionnaire reply was submitted.

(19) On 12 February 2024 the Commission sent a questionnaire to the government of China (‘GOC’). The GOC was also asked to forward specific questionnaires to (i) the Chinese Export & Credit Insurance Corporation (‘Sinosure’), (ii) producers and distributors of E-bike engines, batteries and other E-bike parts and components and (iii) banks and other financial institutions known by the GOC to have provided loans to the industry concerned.

(20) The Commission received no replies to the abovementioned questionnaires. Accordingly, the Commission informed the GOC by Note Verbale of 5 April 2024 that it intended to apply Article 28 of the basic Regulation with respect to the information requested in the questionnaires sent to GOC and invited the GOC to comment thereupon. No comments were received.

(22) On 25 October 2024, the Commission disclosed the essential facts and considerations on the basis of which it intended to maintain the countervailing duties in force. All parties were granted a period within which they could make comments on the disclosure.

(23) Several interested parties submitted comments, which were considered by the Commission and addressed in sections 2.3, 3.9 and 6 below. One party who so requested was granted a hearing.

(24) The product under review is the same as in the original investigation namely cycles, with pedal assistance, with an auxiliary electric motor (‘electric bicycles’ or ‘e-bikes, currently falling under CN codes 8711 60 10 and ex 8711 60 90 (TARIC code 8711 60 90 10).

(25) The product concerned by this investigation is the product under review originating in the People’s Republic of China.

(27) These products are therefore considered to be like products within the meaning of Article 2(c) of the basic Regulation.

(28) Following disclosure, one party submitted that the Commission should specify that the parts imported by the exempted importers and/or from exempted foreign exporters under Commission Implementing Decision (EU) 2024/1279 (7) should not be regarded as product concerned. According to this party, it should be clarified that parts of the product concerned to be used for the product concerned are not subject to countervailing duties if imported separately.

(29) The Commission considered that such clarification was not warranted since parts are not covered by the measures that are subject of this review. On this basis, this claim was rejected.

(30) In accordance with Article 18 of the basic Regulation, and as stated in the Notice of Initiation, the Commission examined whether the expiry of the existing measures would be likely to lead to a continuation of subsidisation.

(31) On 12 February 2024 the Commission sent a questionnaire to the government of China (‘GOC’). The GOC was also asked to forward specific questionnaires to (i) the Chinese Export & Credit Insurance Corporation (‘Sinosure’), (ii) producers and distributors of E-bike engines, batteries and other E-bike parts and components and (iii) banks and other financial institutions known by the GOC to have provided loans to the industry concerned.

(32) The Commission received no replies to the abovementioned questionnaires. Accordingly, the Commission informed the GOC by Note Verbale of 5 April 2024 that it intended to apply Article 28 of the basic Regulation with respect to the information requested in the questionnaires sent to GOC and invited the GOC to comment thereupon. No comments were received.

(33) Given that cooperation from electric bicycle producers in the PRC was insufficient for making representative findings for the purpose of this expiry review (see recitals (16) and (17) above) and the lack of cooperation from the GOC and other relevant parties in the PRC that had been asked to provide information as described above, the Commission, in accordance with Article 28 of the basic Regulation, resorted to the use of facts available to establish the likelihood of continuation of subsidisation of the electrical bikes industry in the PRC.

(35) In the original investigation the Commission established the GOC’s vision for improvement and promotion of key industries, such as the electric bicycles industry, through the implementation of several plans on national, local and sectorial level. In particular, the 13th Five Year plan for National Economic and Social Development of the PRC covering the years 2016-2020 (‘the 13th Five Year Plan’) included new-energy vehicles as a strategic industry (13), whilst the Light Industry Development Plan for the same period (2016-2020), which was prepared by GOC to implement the 13th Five Year Plan, and the Made in China 2025, specifically identifies the bicycles and battery industry as key industries.

(36) As described in the original Regulation (14), under the Light Industry Development Plan, the bicycles and electric bicycle industry required ‘Technology Reformation Engineering’ through the ‘Industrialization of new-material bicycle, technical transformation of the intelligent, environment-friendly and efficient electric bicycle production line and crucial parts’. This Plan also recommended to ‘Promote the bicycle industry to develop in a lightweight, diversified, fashionable and intelligent direction. Speed up the R & D and application of high-strength light material, transmission, drive system, new energy, intelligent sensing technology and internet of Things technology. Focus on developing diversified bicycles suitable for fashionable and casual purposes, exercise and fitness, long-distance country crossing and high-performance folding, and the electric bicycle complied with standard and intelligent electric bicycle with lithium-ion battery’. Moreover, the Light Industry Development Plan listed some concrete policy measures to promote key industries, such as electric bicycles and battery industries. It referred in particular to measures such as increase of market access reform, increase of financial tax policy support as well as financial support.

(37) Furthermore, on the specific bicycle industry sector level, the 13th Five Year Plan for Bicycle and Electric Bicycle Industry (2016-2020), issued by the China Bicycle Association (‘CBA’) included the bicycles industry among the emerging industries and stated: ‘the emerging industries have been promoted to the level of national strategy, such as, new energy, new material, internet, energy conservation and environmental protection, and information technology, so it has become an inevitable trend for traditional industries to enter the mid-end and high-end community. Especially after the Fifth Plenary Session put forward to “promote the low-carbon development of traffic and transportation and encourage the green travel by bicycle”, the bicycle industry will certainly enjoy the new historic opportunities for development.’ The 13th Bicycle Plan further stated that ‘the export scale of bicycles and spare parts will be kept stable and the export of electric bicycles will be dramatically increased. The industry integration will be further strengthened and the contribution of leading enterprises to the output volume will exceed 50 %. The industry will nurture, jointly construct and improve 3-5 industry clusters and characteristic regions. The proportion of mid-end and high-end bicycle and lithium battery bicycle will increase yearly’. One of the main tasks in the Plan was to ‘continue promoting the development of diverse, branded and high-end bicycles in the industry, and gradually increase the proportion of people travelling by bicycle and the proportion of mid-end and high-end bicycles; realize the lightweight, lithium battery and smart electric bicycles, and constantly improve the market share of lithium battery bicycles and the export proportion of electric bicycles’ (15).

(38) Furthermore, in the ‘Catalogue of Investment Projects subject to Government Verification and Approval’, the GOC had signalled an increased prioritisation of alternative energy vehicles, including electric bicycles: ‘Production capacity that increases the number of traditional fuel-powered vehicles shall be strictly controlled such that in principle new manufacturers of traditional fuel-powered vehicles shall no longer be verified and approved for construction. Efforts shall be made to actively guide the healthy and orderly development of alternative energy vehicles’ (16).

(39) Also, the Made in China 2025, Decision No 40 and The National Outline for the Medium and Long-term Science and Technology Development (2006-2020) identified the electric bicycles industry as a strategic/encouraged key industry whose development should be prioritised and supported (17).

(40) Furthermore, the original investigation also established that GOC not only promoted the electric bicycles industry but also their parts, notably engines and batteries (18) through various plans at national, regional and sectorial level. Notably, the 13th Five Year Plan explicitly referred to support to the development of high-efficiency energy storage whilst the Light Industry Development Plan listed the battery industry as a key industry. In addition bicycle parts, specifically batteries and light metals for frames were listed as encouraged industries in the ‘Catalogue of the Guidance of Foreign Investment Industries as well as in the Catalogue of Priority Industries for Foreign Investment in Central and Western China. Finally, lithium-ion batteries were part of the encouraged industry list in the Catalogue for Guiding Industry Restructuring.

(41) The Commission thus concluded in the original regulation that the electric bicycle industry and its parts were regarded as key/strategic industries, whose development was actively pursued by the GOC as a policy objective (19).

(42) The expiry review request confirmed that that the GOC has continued to actively support the development of the electric bicycle and parts industry, which are still regarded as key industries in China through various policy documents and legislation, as set out below.

14th Five Year Plan

(43) The 14th Five Year Plan (‘14th FYP’) for the period 2021 to 2025 highlights the strategic vision of the GOC for improvement and promotion of key industries (20). According to its Chapter I, one of the main development lines is to promote the upgrading of the traditional industrial structure and deepen the ‘technological revolution and industrial transformation’. This idea is further elaborated in Chapter IV, which aims at developing an optimised modern industrial system with the objective of making China a ‘manufacturing powerhouse’. In order for emerging industries to ‘accelerate and expand’, the plan supports the development and promotes the production of ‘new-energy vehicles and green and environmentally friendly products’, as was already the case in the 13th Five Year Plan.

(44) The 14th FYP is further implemented through local and sectoral plans, which set the direction of policies to be implemented for the development of strategic industries and sectors.

(45) On top of the 14th FYP, each sub-central level implements it with provincial and local plans as to ensure effective action. In particular: