Bicycling IQ has a very good article up on the exodus of smaller Taiwanese bicycle component manufacturers from China as structural increases make doing business in China less of a profitable endeavor. The problem for these companies is in finding competing economies of scale.
Courtesy of the China-Taiwan cross-strait economic cooperation framework agreement (ECFA), tariffs on bicycle imports between the two countries have dropped from their previous levels of 12%, to 0% this year. The ECFA has been well-received by Taiwan-based makers of higher-end bicycles; but mostly those who had previously added mainland infrastructure to their manufacturing arsenal, years before they caught a whiff of earnest free trade discussions. They can now toggle their operations almost effortlessly between the two countries, depending on demand and client need. Other, smaller, OEM’s may struggle to compete against such flexibility in a declining global market.
- Jim's Bike Blog takes a brief look at Taiwan's Cycling Scene.
- Merida's Ike Tseng passes away at 81. Merida is Taiwan's second largest producer of bicycles and a major shareholder in Specialized.