The purpose of this paper was to review bicycle industry development in China from 1970s till now. The paper presented the trading statistics about China. As bicycle industry clusters moved from Japan and then to Taiwan and to China again, the statistics of Eastern and Asian countries can be discussed and to be analysis the role of China played in the global value chain. Given trading statistics about France, Germany, Italy, Japan and Taiwan, the role China plays in the global market can be easily displayed.

Transforming from planned economy to free market economy, the overview on bicycle development in southern, central and northern region in China gave evidence that Chinese bicycle industry grew with the state owned enterprises and foreign funded enterprises. Different labor division, strategies and market orientation adopt by enterprises can be seen in the three regions. Business decisions and costs are made in response to market signals, and without significant State interference.

During the investigation, we reviewed the historical Taiwanese and Chinese bicycle industry. Taiwan bicycle manufactures moved the low end production line to China and brought in investment on facility, technology, and special knowledge to China. Taiwan benefited from this labor division and gave China a chance to build a more defined bicycle industry cluster. After the implementation of ECFA, the labor division between China and Taiwan will be more subtle, concrete and clear. China may benefits from knowhow from the Taiwan funded enterprises while Taiwan enterprises make profits from gaining the share of Chinese home market.

On top of competition and dumping charge from other countries, China itself was a big bicycle ownership country. Upon favored by the national transportation could trigger another booming in the development of bicycle industry.

The purpose of this paper was to review bicycle industry development in China from 1970s till now. The paper presented the trading statistics about China. As bicycle industry clusters moved from Japan and then to Taiwan and to China again, the statistics of Eastern and Asian countries can be discussed and to be analysis the role of China played in the global value chain. Given trading statistics about France, Germany, Italy, Japan and Taiwan, the role China plays in the global market can be easily displayed.

Transforming from planned economy to free market economy, the overview on bicycle development in southern, central and northern region in China gave evidence that Chinese bicycle industry grew with the state owned enterprises and foreign funded enterprises. Different labor division, strategies and market orientation adopt by enterprises can be seen in the three regions. Business decisions and costs are made in response to market signals, and without significant State interference.

During the investigation, we reviewed the historical Taiwanese and Chinese bicycle industry. Taiwan bicycle manufactures moved the low end production line to China and brought in investment on facility, technology, and special knowledge to China. Taiwan benefited from this labor division and gave China a chance to build a more defined bicycle industry cluster. After the implementation of ECFA, the labor division between China and Taiwan will be more subtle, concrete and clear. China may benefits from knowhow from the Taiwan funded enterprises while Taiwan enterprises make profits from gaining the share of Chinese home market.

On top of competition and dumping charge from other countries, China itself was a big bicycle ownership country. Upon favored by the national transportation could trigger another booming in the development of bicycle industry.

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