China Implements Anti-Dumping Duties on European Brandy in Retaliation for Electric Vehicle Tariffs
The Chinese Ministry of Commerce recently announced that, starting October 11, it will implement temporary anti-dumping measures on brandy imported from the EU, with a maximum deposit rate of up to 39%. This move is seen as retaliation against the EU's recent decision to impose countervailing duties on Chinese electric vehicles. On October 4, the European Commission passed a resolution accusing the Chinese government of providing subsidies that create unfair competitive pressure on the European automotive industry, deciding to impose tariffs of up to 45% on Chinese electric vehicles.
The Chinese Ministry of Commerce emphasized that this anti-dumping measure is in accordance with Chinese laws and regulations and complies with World Trade Organization (WTO) rules. Additionally, China is investigating whether imports from the EU, such as pork and dairy products, are subject to dumping or subsidization.
The investigation into brandy indicates that EU brandy poses a dumping threat to the Chinese market. Major brandy-exporting countries include France, the Netherlands, Spain, and Portugal, with French brandy accounting for 99% of China's brandy imports. France is also a key advocate for the electric vehicle tariffs.
France expressed dissatisfaction, criticizing Chinese President Xi Jinping for promising not to impose temporary tariffs during his visit to Paris, only to now go back on that commitment. The European Commission also announced plans to protest at the WTO, stating that China’s actions lack justification, and the EU will resolutely defend its industry against trade protectionism.
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