The decision by the UK government to lift tariffs on Chinese e-bikes has been criticised as detrimental to British manufacturing. The move, which came into effect on Friday, has been welcomed by the Trade Remedies Authority as an opportunity for consumers to save £200 and decrease the cost of Chinese imports. However, British e-bike businesses have spoken out against this decision, expressing their concerns about this experiencing a significant impact at a time when the market has been adversely affected by the global pandemic.
Volt, an e-bike company based in the UK, has been actively involved in producing bikes in their factory in Milton Keynes and found the government’s decision to be “very strange”. James Metcalfe, co-owner of the company stated that the move was a “kick in the teeth for UK manufacturing,” which emerged at a time when many small businesses are attempting to produce their items in the country. Furthermore, the recent decision does not follow the EU’s stance on the issue, and competition, pricing and increasing overstocking levels are the main reasons behind Britain’s need to attract cheaper Chinese imports.
E-bikes, also known as electric bikes, have been rising in popularity among the general public, providing a faster and easier method of transportation across the country. However, since the outbreak of the COVID-19 pandemic, the market has faced difficult times with companies struggling to clear their inventory. Mercian, Orange Mountain Bikes, and Islabikes are among the businesses that have struggled in recent years. David Miall, CEO of Wisper Bikes stated that the updated regulations would create extra competition in an already overstocked industry. Local firms have been discounting their prices in order to be competitive, which highlights the potential issues that may come from increased competition in the market.
Despite these concerns, the UK government believes that the move will benefit the e-bike industry in the country. The discounted Chinese goods entering the country are also designed by firms that have an overstocked inventory of their products. Although locally manufacturing businesses have criticised the new policies, the government has guaranteed that the industry requiring protection will remain untouched, and investments in the sector are continuing to be made. Nonetheless, it is essential for the government to contemplate measures to ensure a balance in the market, since there’s no indication that the imports of cheaper Chinese e-bikes will wane any time soon
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