China opted to not impose new tariffs on French cognac producers after an anti-dumping investigation, but concluded that there were dumping practices on brandy imports into the Chinese market in the latest chapter of a continuous trade tension between the European Union and China.
The investigation started in January after the EU began its own investigation over subsidies on Chinese electric vehicles, but according to Chinese authorities it started after prompt by local brandy producers. The bloc recently confirmed that it will hike tariffs on EVs imports from China. In response, China started probes on food imports from the EU, targeting the alcohol, pork and dairy industries.
Following the investigation, the Ministry of Commerce said that it made a preliminary decision to not impose anti-dumping measures without explaining the reason why, but confirmed that French producers recourse to dumping practices that harmed Chinese brandy producers. The announcement still leaves open the possibility of Beijing to impose tariffs on brandy products.
Lobby group SpiritsEurope said they were “very disappointed by this announcement” as it leaves the threat of higher tariffs still looming large. Chief executive Alexandre Ricard of French spirits giant Pernod Ricard said to investors that the company is “prudent” on China and shared SpiritsEurope’s disappointment on the decision as the probe will go on until July 2025, meaning that “[China] could still decide to impose tariffs between now and then.”
Commenting on the decision, European Commission spokesman Olof Gill said in a press briefing that “we will examine in detail the basis of these measures and we will not hesitate to take all necessary action to defend our EU exporters.” Gill also reiterated that EU brandy export to China are “completely in line with World Trade Organization rules.”
