Recently, I came across news about the U.S. Department of Commerce (DOC) initiating an anti-dumping investigation focused on low-speed passenger vehicles imported from China. These vehicles, including sightseeing cars, electric golf carts, and other personal transportation options like electric tricycles, are under scrutiny due to allegations that they are being sold in the U.S. at prices that beat local manufacturers. The investigation will assess these claims, potentially leading to the imposition of tariffs.
This investigation is part of a broader U.S. effort to address Chinese imports across various sectors. The anti-dumping duties could be significant, with margins potentially exceeding 376%.
International observers have expressed concern, as Chinese tricycles are highly competitive in many markets. For instance, in the delivery industry, FedEx in the United States developed its own electric tricycle a few years ago, which was significantly more expensive and less efficient than Chinese alternatives.
The colloquial term for these three-wheeled vehicles is 三蹦子 (sān bēng zi), referring to motorized tricycles commonly used for transportation in both rural and urban areas. These vehicles are popular due to their affordability and practicality.
Delving into the origins of China's tricycle industry reveals that Yanshi District in Luoyang City, Henan, is known as "China’s Tricycle Capital," producing nearly 40% of the country's tricycles. This local manufacturing industry has successfully expanded internationally, with Yanshi exporting 58,000 tricycles and 540,000 related components last year.
Henan is also home to many other significant export industries. One such industry is lab-grown diamonds, which are nearly indistinguishable from natural diamonds in terms of chemical composition, physical properties, and appearance. However, lab-grown diamonds are priced at only about 10% of their natural counterparts, and last year, they captured over half of the market share. Henan produces 80% of China's lab-grown diamonds.
Another industry from Henan’s small towns that has seen international success is violin manufacturing. Globally, 90% of violins are made in China, and over 80% of China’s mid-to-high-end violins come from Henan. Each year, 400,000 mid-to-high-end violins are produced here, with annual exports exceeding $20 million.
Lastly, Xuchang's wig industry stands out, with its products sold worldwide. Last year, Xuchang's wig exports reached 16.85 billion yuan, making it the top global producer.
Considering the flourishing productivity from just one province in China, I’m reminded of many articles from prestigious publications like The Economist, which have long predicted a decline in China's economy. Yet, the resilience and resourcefulness of the Chinese people continue to generate surprise and immense productivity on the global stage, challenging these forecasts and demonstrating the enduring strength and the richness of Chinese culture and industry.
A Chinese saying goes, 卧虎藏龙 (Wò hǔ cáng lóng), meaning "Crouching Tiger, Hidden Dragon." This phrase describes hidden talents or potential that aren’t immediately visible to outsiders. It reflects how some may underestimate or overlook China’s economic strength, only to be surprised by the immense potential and capabilities that are now emerging on the global stage. This unexpected rise like 三蹦子 has even drawn the attention of the U.S. Department of Commerce.