Cheap China e-bikes 'kick in teeth' for UK firms

The British government's decision to eliminate tariffs on electric bicycles imported from China has been criticized by British manufacturing figures as a "heavy blow to British manufacturing." Post-Brexit, the UK had imposed border taxes on Chinese-made e-bikes, aligning with the EU. However, Business Secretary Jonathan Reynolds has accepted advice to remove tariffs on non-folding e-bikes starting this Friday, a move that has sparked considerable debate.

The Trade Remedies Authority, responsible for reviewing tariffs, stated that allowing cheaper Chinese imports into the UK market could save consumers £200. However, domestic British businesses have called the decision "strange," describing it as a "very frightening moment" for the industry, undoubtedly adding insult to injury. This decision's potential impact on the local economy is now under scrutiny.

British domestic electric bicycle companies are concerned about a potential "flood" of cheap Chinese e-bikes into the UK market. James Metcalfe and his brother Llyr, of Volt Bikes, own a factory in Milton Keynes. They previously manufactured bicycles in China before moving operations to a factory in Poland, and then relocated production to the UK after Brexit, emphasizing their commitment to local manufacturing.

Metcalfe told the BBC: "I think it's a bizarre decision and a heavy blow for British manufacturing." He added: "We moved production here with assurances of long-term change. We've invested heavily in it. We're a small family business trying to do the right thing by making a quality product." He also pointed out that the UK bicycle market is already very price-competitive, making cheaper imports from China unnecessary.

Metcalfe questioned: "What's the benefit? I can't see any benefit. The government is claiming that this will save British consumers money, but we've been pushing for alternative savings for years, such as subsidies for customers." He further suggested: "Why not do what the rest of Europe does? Offer subsidies and invest in UK cycling infrastructure." Metcalfe also questioned why tariffs on folding e-bikes from China remain in effect, highlighting inconsistencies in the government's approach.

The British government stated that it has accepted the Trade Remedies Authority's recommendation to remove anti-dumping duties of 10.3% to 70.1% imposed on Chinese electric bicycles, as well as taxes designed to offset subsidies of 3.9% to 17.2%. A government spokesperson said: "It is vital that we protect UK industries from unfair competition, which is why we have decided to maintain protections for UK-based UK folding electric bicycle manufacturers, while lowering prices for consumers and importers of other products."

The spokesperson added that the government is "continuing to take action on unsafe e-bikes" and recently launched a campaign "to raise awareness of the risks of dangerous e-bike batteries and scooters." After experiencing a boom during the COVID-19 pandemic, the UK bicycle industry has faced challenging years. Outdoor activities increased during the pandemic, and many people chose to cycle instead of using public transport. Sales have declined sharply since the pandemic, leaving many companies with excess inventory, leading to financial difficulties.

David Miall, head of Wisper Bikes electric bicycles, said that British companies have been offering significant discounts in recent years to attract new customers. He said the government's latest move, which he called a "very strange decision," would bring a "flood" of cheaper Chinese imports into an already overstocked market. He stated: "It's a very frightening moment for the industry, and it's going to cause a lot of trouble for a lot of companies." David's company designs bicycles in the UK but manufactures them in Taiwan and Portugal.

He stated that he had already been contacted by Chinese bicycle manufacturers offering very low prices for their products. "They're overstocked as well, and they're now looking at the UK as a place to dump their bikes," he said, adding that he may now consider focusing solely on folding e-bikes. "I think the government's idea is 'let's push e-bikes,' but it's an ill-thought-out result from people who don't understand the industry," he said, criticizing the lack of industry consultation.

The Bicycle Association, which represents companies that manufacture and sell standard and folding bicycles, stated that it is helping its members navigate the new regulations. A spokesperson said: "This is a significant decision, and the impact on the UK bicycle industry and its supply chain may take some time to become clear. For example, we have already asked for official clarification of the precise definition that HMRC will use to identify 'folding e-bikes' that remain subject to these measures," indicating the need for clear guidelines.

Electric bicycles – or "electrically assisted pedal cycles" – are increasingly becoming a mode of transport for thousands of people in the UK. The broad term "electric bicycle" is often used for any e-bike, but it can actually refer to very different types of devices governed by different laws. When most people think of an e-bike, they think of a regular bicycle with a small, rechargeable motor that makes it easier for the user to turn the pedals. However, there are also more powerful electric bicycles on the market, sometimes also categorized as e-bikes – for example, some models can reach speeds of 60 miles per hour and are designed for off-road riding in rugged terrain.