HAIKOU, CHINA – DECEMBER 17: People buy brandy during the 26th China (Hainan) International Winter Tropical Agricultural Products Fair at the Hainan International Convention and Exhibition Center in Haikou, China, on December 17, 2023.
Meng Zhongde|Visual China Group|Getty Images
China will begin implementing temporary anti-dumping measures this week on imported brandy products originating from the EU. A notice issued by the Ministry of Commerce on Tuesday showedA few days ago, the European Union voted to continue imposing tariffs on electric vehicles made in China.
Chinese customs officials will begin collecting deposits from companies selling brandy originating in the European Union from Friday. The notice stated that the deposit amount ranges from 30.6% to 39% of the total value.
Decide The initial ruling was overturned in late August, Despite concluding that European brewers have been selling brandy in China at a profit of 30.6% to 39%, China said it would not implement any anti-dumping measures.
“The relevant brandy industry in China has been seriously damaged or threatened,” the statement read.
The measure was taken on Tuesday after the European Union voted on Friday to impose final tariffs of up to 45% on Chinese-made electric vehicles. Additional duties, which may be as high as 35%, are imposed on top of the existing 10% rate.
China is “strongly dissatisfied” with the EU’s imposition of countervailing duties on Chinese electric vehicles Spokesperson of the Ministry of Commerce of China It said in a statement on Friday that this was an “unfair, illegal and unreasonable” protectionist act.
In January this year, China launched an anti-dumping investigation into imported brandy originating from the EU.
European influence
The measures come as China’s imports of cognac and brandy fall, with imports down 40% year-on-year in August, according to UBS Group AG’s Spirits Tracker.
The European Commission said it would challenge Beijing’s temporary measures at the World Trade Organization level.
“We consider these measures to be unfounded and we are determined to protect EU industry from the misuse of trade defense tools,” European Commission trade and agriculture spokesman Olof Geer said in an emailed statement.
According to Reuters, French Trade Minister Sophie Primas said that Beijing’s statement on Tuesday “appears to be a retaliatory measure following the European Commission’s investigation into electric vehicles.”
“Such retaliatory measures are unacceptable and completely violate international trade rules,” she added, noting that France would cooperate with the EU in protesting China’s decision.
Beijing’s latest measures have weighed on the share prices of European spirits makers, with Pernod Ricard down 3.69% and Remy Cointreau down 8.34% as of 11:58 a.m. London time. The share price of luxury goods group LVMH (which produces high-end cognac through its Moet Hennessy brand) fell 3.57%.
— CNBC’s Ganesh Rao contributed to this report.
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