China-Germany Promotion Meeting Drives Overseas Development of Chinese Bicycles.
The top issue of China’s bicycle industry in the first half of 2019 was the imposition of anti-dumping and countervailing duties on China-made electric bicycles in Europe from January 19, leaving both exporters and importers facing an uncertain future.
In this particular case, the enterprises with stable export volume have directly opened new factories in Europe. For example, Giant established a new factory in Hungary in 2018. Some enterprises set up factories in other Asian countries that are not included in the anti-dumping list. Enterprises without adequate volume of business export to Europe by means of original equipment assembling or entrust the product processing to enterprises in Europe and then distribute the products to dealers in Europe. The core that these enterprises can depend on is that China has a complete supply system of parts and accessories and it has the core competitiveness brought by the ability to constantly develop products based on customers’ needs.
Sachsenring Bike Manufaktur GmbH, a German company with 110 years of experience in bicycle production, offered anti-dumping solutions at 2019 China International Bicycle Fair in May. Also the German ExtraEnergy Services GmbH Co & KG, together with the chamber of commerce of Thuringia, held a promotion meeting, with Chenman Culture and Media (Suzhou) Co., Ltd as the organizer of the meeting.
At the promotion meeting, the manager of German chamber of commerce, Mr. Hao Zhi introduced the economic situation of Thuringia as well as some procedures and requirements for setting up a company there.
Stefan Zubcic, general manager of Sachsenring Bike Manufatur GmbH, said that as the largest electric bicycle market in Europe, there is almost no logistics cost for assembling in Germany. The comprehensive costs have obvious advantages despite the high labor cost. Moreover, products made in Germany are not only recognized and trusted by German consumers, but also favored by consumers all over the world. Sachsenring provides assembling as well as sales network and an after-sales service system covering German-speaking areas.
Mr. Chen Dingwu, co-founder of ExtraEnergy Services GmbH Co & KG, said that ExtraEnergy is a light electric vehicle organization that represents the interests of consumers. Since the bicycle anti-dumping, ExtraEnergy is the first to cooperate with the Chinese industry association and introduce the development of the world electric bike market. In 2008, they organized the Chinese industry’s visit to Europe, and helped establish relationship with the EU two-wheeler dealers association (also known as LEVA-EU today, which represents the interests of European dealers and opposes EU anti-dumping and countervailing duties together with Chinese enterprises).
ExtraEnergy Services has helped many Chinese enterprises, such as Phylion and Bafang, enter the European market, assisting them in market promotion. The cooperation with German manufacturers brings Chinese enterprises not only manufacturing organizations, but also the chance to know the German policies and regulations on a timely basis. For non-local businessmen, the European laws, especially German laws are extremely strict, so it is crucial for them to make products not only meet safety requirements but also comply with laws and regulations. Product compliance with safety requirements does not equate to its legality. Now it is possible for Chinese enterprises to access to parts, such as Bosch drive systems, which are not supplied to external enterprises. ExtraEnergy optimizes the products with a unique test and evaluation method.
The promotion meeting was welcomed and supported by many enterprises, especially since many enterprises have made a lot of attempts last year and are willing to learn about more new opportunities.
For further information, please contact:
Text and picture: Chen Dingwu
Online publication: Angela Budde
12th June 2019