ECFA Buoys Taiwan's Bicycle Exports to China
2012/03/21 | By Quincy LiangTaipei, March 21, 2012 (CENS)--In the first two months of this year, Taiwan exported about 20,000 bicycles to China, already about 60% of that in 2011, according to the Taiwan Bicycle Exporters' Association (TBEA).
The export average selling prices (ASP) to China during the period was over US$500, the association said, and the 2012 export value is expected to challenge US$200 million, a 150% YoY increase.
Shih Yen-Shiang, Economics Minister, recently said that the Economic Cooperation Framework Agreement (ECFA) between China and Taiwan is benefitting the local bicycle industry. The original tariff rate on assembled bicycles traded between Taiwan and China was 11% to 12%, but lowered to 5% in 2011 and zero in 2012, driving bicycle exports to China up 207% in 2011, and parts exports by 99%.
Tony Lo, chairman of TBEA and CEO of Giant Manufacturing Co., Ltd., the largest bicycle manufacturer in Taiwan, said that Taiwan exported some 4.38 million bicycles in 2011, translating into export value of US$1.66 billion (a 10.7% increase from previous year). Last year, the average export ASP of assembled bicycles was US$380, up 28.2% year-on-year (YoY); while export values of bicycle parts was US$781 million, up 18.9%.
Lo also praised the benefits brought by ECFA to the local bicycle industry, saying that the island imported some 560,000 assembled bikes from China in 2010, and some 500,000 units in 2011. Taiwan, however, exported some 11,000 upscale bicycles to China in 2010, and over 33,000 units in 2011, while bike-parts exports grew by about 100% to US$64 million.
Exports by Taiwan's Bicycle Industry (2009-2011) | ||||
| 2009 | 2010 | 2011 | Year-on-year |
Export Volume of Assembled Bicycles | 4.3 million | 5.1 million | 4.4 million | -13.6% |
Export Value of Assembled Bicycles | US$1.3 billion | US$1.5 billion | US$1.7 billion | 10.66% |
Average Export Price | US$291 | US$296 | US$380 | 23.4% |
Export Value of Bicycle Parts | US$511 million | US$660 million | US$782 milion | 18.85% |
Total | US$1.76 billion | US$2.16 billion | US$2.44 billion | 13.05% |
Source: TBEA. |