Chinese Bikes Being Dumped in U.S., Trade Panel Rules

The U.S. International Trade Commission ruled Friday that imported Chinese bicycles are being sold below their production cost and are harming domestic manufacturers.

The 6-0 vote by the ITC, a quasi-judicial independent trade panel appointed by the President, upholds a complaint made in April by Huffy Bicycle Co., Murray Ohio Manufacturing Co. and Roadmaster Corp.

The complaint by the Bicycle Manufacturers Assn. of America alleged that Chinese bicycles are sold in the United States for as much as 98% below their fair value.

In 1994, Chinese-made bikes accounted for 23.7% of the U.S. market, the trade group said. In January, 1995, market share had climbed to 32%, the BMA said.

Canada, the European Union and Mexico have all imposed anti-dumping duties on Chinese bicycles in recent years, the BMA said.

Huffy, Roadmaster and Murray Ohio make up about 95% of U.S. bicycle production, the BMA said.

As a result of the ITC’s finding, the Commerce Department will continue its anti-dumping investigation on imports of Chinese bicycles. A preliminary determination will be released Sept. 12.

The department reported Thursday that the U.S. trade deficit with China narrowed to $1.839 billion in March. U.S. exports fell to $1.080 billion, while imports from China fell to $2.918 billion.

In 1994, China’s annual trade deficit with the United States reached a record $29.5 billion, up from $22.7 billion in 1993.