EU imposing up to a 79% import duty on Chinese ebikes..

neptronix

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https://electrek.co/2019/01/18/eu-imposes-electric-bicycle-duties/

Through the course of the investigation, it was discovered that a number of Chinese manufacturers were receiving government benefits including preferential lending, preferential financing, and provision of bicycles and components at preferential costs.

Bafang was the only electric bicycle parts distributor to participate in the European Commission’s investigation. According to the European Commission’s report, Bafang provided unfairly reduced prices for certain Chinese electric bicycle manufacturers.
 
Guy told me how it all works...

He moved his plywood factory to China. You sell at or below cost when you export and then all your profit comes from export subsidies. He was getting an 18% export subsidy payment which means his profit margin was 18% if he sold at cost.

9 times higher than his 2% profit margin in the USA
 
flathill said:
Guy told me how it all works...

He moved his plywood factory to China. You sell at or below cost when you export and then all your profit comes from export subsidies. He was getting an 18% export subsidy payment which means his profit margin was 18% if he sold at cost.

9 times higher than his 2% profit margin in the USA

The Chinese Government doesn't give money away.

Your "cost" includes 17% tax, if you export, you can claim the 17% tax back (it might be 18 now). A number of countries have similar setups, Australia for example (or did last time I was there).

Mind you, the Chinese Gov does have R%D grants, pays your costs for every patent you have, will defer tax payments during formative years, and in some cases will give you free factory for a few years, and or possibly cheap land. They will offer help through Universities, and other Government Department assistance such as finding you logistics, marketing, suppliers etc.

Of course you must demonstrate a profitable business that will ultimately pay tax, and offer local employment etc.

The best part is they make you feel like you are a part of something, not crush you at every chance like the Australian Government will. No prize for guessing i am Australian and have been in business in Australia, now in China 15 years.

Trust me, the old line of people go to China for "cheap labour" is a whitewash of the real reasons.
 
The EU shitting on China for economic protectionism is just a case of kettle calling the pot black.

All that they are accomplishing with this is to screw over a entire continent for the sake of a thousand or less jobs.

China giving kick-backs and subsidies really just means that the Chinese people are paying for a portion of the products EU consumes. It's kinda stupid to not take advantage of it.
 
sleepy_tired said:
The EU shitting on China for economic protectionism is just a case of kettle calling the pot black.

Fairly dangerous move if you consider how large the German and French car sales market is in China, and the instant damage China could do to them in retaliation - as is happening to American Farmers right now.

You wouldn't mind so much if the EU was prepared to give the import duty money directly to the European EV Scooter Manufacturers to make them competitive, but we all know that's not going to happen.
 
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