Jim Whitney Economics 311
 
Trade dispute case study: Bicycles from China
International Trade Commission case: 731-TA-731 (1996)

Complaint: that an industry in the United States is materially injured or threatened with material injury by reason of imports of bicycles from the People's Republic of China ("China") that have been sold in the United States at less than fair value ("LTFV").

LTFV information: The dumping margins found by the Department of Commerce are 2.27 and 2.95 for bicycles primarily shipped to the "independent bicycle dealers" (IBD) market, 2.02 for bicycles primarily shipped to "others" (i.e. discount warehouses), and 61.67 for the LTFV exporters to the mass merchandiser market. The LTFV imports subject to the 61.67 percent margin represent approximately 60 percent of total LTFV imports.

Import information: The market share, by quantity, of subject imports increased from 12.0 percent in 1992 to 15.8 percent in 1994, and then decreased to 10.8 percent in 1995.

Domestic industry information:
    Prices: Available data on price trends were either spotty or incomplete or did not reveal strong or consistent correlations between subject import prices and domestic prices. However, in the mass merchandiser market, prices for five of the six domestic products for which data were collected declined between 1992 and the first quarter of 1995. Prices for these domestic products declined in a range between 4.0 percent and 19.9 percent.
    Production and market share: Domestic bicycle production increased from 9.3 million bicycles in 1992 to 10.6 million bicycles in 1993, before decreasing to 9.7 million bicycles in 1994 and 9.3 million bicycles in 1995. By quantity, domestic producers' market share dropped from 59.1 percent in 1992 to 57.8 percent in 1993, rose to 58.0 percent in 1994, and then dropped to 55.7 percent in 1995.
    Profits: Gross profit margins increased from 15.8 percent in 1992 to 17.3 percent in 1993, and then fell to 14.4 percent in 1994 and 12.7 percent in 1995.