China Trade Update: Brandy Tariffs and EV Investigations in Focus

China's Brandy Tariffs and Trade Reactions

China has announced that it will impose anti-dumping duties on European brandy imports starting this Friday, following the European Union's vote to apply tariffs on Chinese-made electric vehicles (EVs).

Details on the Tariff Structure

The Ministry of Commerce (Mofcom) confirmed that the duties will apply to imports under 200 litres, with rates varying by company: 30.6% for Martell, 38.1% for Remy Martin, and 39% for Hennessy. This action comes amid an ongoing investigation into the impact of EU brandy dumping, which the ministry states poses a direct threat to the local industry.

Linking European Brandy to Industry Damage

• The Mofcom has cited significant evidence of dumping practices.
• This reflects a broader strategy to safeguard Chinese brands against foreign competition.
• EU brandy imports account for a large portion of market supplies, intensifying concerns among local producers.

Broader Implications for EU Relations

As tensions rise, those in Brussels face the fallout from retaliatory measures in response to the EV tariffs set at up to 45%. Beijing has communicated its stance on protecting local industries while continuing investigations into EU products, including dairy and pork.

Macron’s Response to China Trade Issues

In light of these developments, French President Emmanuel Macron previously expressed gratitude towards President Xi Jinping for maintaining a dialogue over brandy trade matters. This evolving trade situation underscores the delicate balance between market interests and diplomatic relations.