With more than 40,000 employees in over 1,000 companies, the bicycle industry is an important economic sector in Taiwan. Around 40 percent of all bicycles sold in Europe are manufactured in Taiwan. However, behind the factory gates, working conditions are sometimes appalling, as Danish journalist Peter Bengtsen discovered during lengthy research on site – Ride reported on this in March last year. This research caused a stir in the bike community, as forced labor and debt bondage do not fit in with the friendly, sustainable image that the industry and scene like to adorn themselves with. Virtually all the major players are affected: Giant, Merida, Maxxis, Fox – to name just the most prominent names. Giant and Merida are among the world's largest bicycle manufacturers. Many well-known brands, such as Scott and Trek, have their frames manufactured there. However, Bengtsen's research not only caused outrage, but also had real consequences. In September 2025, the US Customs and Border Protection (CBP) imposed a so-called "Withhold Release Order," i.e., an import ban on bicycles and components produced in Taiwan by Giant – including those manufactured there for other brands – on suspicion of forced labor. This caused quite a stir among manufacturers and the Taiwanese authorities. At the beginning of October, Taiwan's parliament addressed working conditions in the bicycle industry and announced far-reaching measures. Initial improvements implemented By the end of 2025, Bengtsen estimates that Giant, Merida, and Maxxis alone will have paid a total of 7 to 8 million euros in compensation to affected migrant workers. In addition, Giant has had new and improved accommodation built for more than 400 employees. Fair overtime regulations and working conditions have been promised, and guarantees have been given that no more agency fees will be charged to migrant workers. How serious these efforts to improve working conditions really are remains to be seen, says Bengtsen. 

The US import ban is causing nervousness in the industry at a time of ongoing crisis in the bicycle industry. In addition, the new forced labor regulation will come into force in the EU on December 14, 2027, prohibiting the import and sale of products that have been manufactured in whole or in part using forced labor. In December 2025, the Taiwanese Ministry of Economic Affairs offered initial seminars to inform industry representatives about how to comply with these regulations in order to avoid import bans. The Taipei Cycle Show at the end of March 2026 is eagerly awaited within the industry. Manufacturers such as Giant have announced that they will be announcing further steps to improve working conditions in their factories at the show. Other companies and large industry associations also want to use the trade fair to address the issue, according to reports.