China slaps 'anti-dumping' taxes of up to 34.9 percent on EU brandy
Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies.
It later said it had determined in a preliminary ruling that dumping had occurred and imposed "temporary anti-dumping measures" on imports of the alcoholic beverage.
And Beijing's commerce ministry said on Friday that China's tariff commission had "decided to impose anti-dumping duties on imports of relevant brandy originating in the EU from July 5, 2025".
"The investigating authority finally ruled that there was dumping of relevant brandy imported from the EU," the ministry said in a statement.
"The domestic relevant brandy industry was threatened with substantial damages, and there was a causal relationship between the dumping and that threat," it said.
The levies will apply to brandy in containers of less than 200 litres, according to the ministry.
It said the tax rate on French liquor giant Jas Hennessy would be 34.9 percent.
Remy Martin will be hit with 34.3 percent and Martell 27.7 percent.
The levies come as Chinese top diplomat Wang Yi has held fraught meetings with his counterparts during a tour of Europe this week.
And they will likely be high on the agenda when he meets French Foreign Minister Jean-Noël Barrot on Friday afternoon in Paris.
Bitter taste
A trade spat between Beijing and the bloc erupted last summer when the EU moved towards imposing hefty tariffs on EVs imported from China, arguing that Beijing's subsidies were unfairly undercutting European competitors.
Beijing denied that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products.
The EU imposed extra import taxes of up to 35 percent on Chinese EV imports last October.
Beijing later lodged a complaint with the World Trade Organization, which said in April that it would set up an expert panel to assess the EU's decision.
China is a major market for French cognac, with exports worth 1.4 billion euros ($1.6 billion) per year. The anti-dumping measures are costing the industry 50 million euros per month.
China and the EU are scheduled to hold a summit this month to mark the 50th anniversary of the establishment of diplomatic ties.
But the festivities come at a time of strained relations, with the trade tensions compounded by Beijing's position on the Russian invasion of Ukraine, which Brussels says shows tacit support for Moscow.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
7 hours ago
- Fashion Network
Euratex calls for greater clarity in European textile agenda
Free trade, Green Claims, and customs clearance. At a time when the international context is putting pressure on demand for textiles and clothing, the European textile industry confederation Euratex is asking Brussels for greater clarity regarding European initiatives. Euratex is making this request in conjunction with the Danish textile federation, Dansk Mode & Textil, on the occasion of the Danish presidency of the European Union. Eight issues are specifically singled out by industry representatives, who point out that current regulatory uncertainty discourages investors from investing. "Our textile companies are faced with too much uncertainty," said Euratex managing director, Dirk Vantyghem. "Although the EU cannot solve them alone, we expect the Danish Presidency to show leadership and move forward on these many urgent issues. We have no time to lose if we want to preserve the competitiveness of our industry." Euratex is asking Brussels to ensure that the future Circular Economy Act, which is supposed to harmonize green legislation in Europe, creates a genuine European market for end-of-life textiles. Euratex is also calling for an acceleration of the Waste Framework Directive, which should lay the foundations for EU-wide waste management. The textile industry is calling for an early end to the tax-free allowance for non-European parcels under 150 euros, a niche on which Shein and Temu thrive. The textile industry is also calling for clarification of the future of the Green Claims directive, which is tasked with combating greenwashing. A text which, as pointed out, is currently the subject of much confusion. The professionals are also calling for the rapid signature of the free-trade agreement with Mercosur, while calling for greater caution in ongoing discussions with India. The energy aspect has not been forgotten, with Euratex calling for progress on the Energy Union project. This text should make energy more accessible to European manufacturers. The revision of the Reach regulation on the use of chemicals is also the subject of a call for greater efficiency and coherence. The confederation points out that this is to prevent companies from relocating outside the EU.
France 24
7 hours ago
- France 24
BRICS nations voice 'serious concerns' over Trump tariffs
Emerging nations, which represent about half the world's population and 40 percent of global economic output, are set to unite over "serious concerns" about US import tariffs, according to a draft summit statement obtained by AFP. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive duties. His latest salvo comes in the form of letters informing trading partners of new tariff rates that will soon enter into force. The draft summit declaration does not mention the United States or its president by name. But it is a clear political shot directed at Washington from 11 emerging nations, including Brazil, Russia, India, China and South Africa. "We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO (World Trade Organization) rules," the draft text says. It warns that such measures "threaten to further reduce global trade" and are "affecting the prospects for global economic development." Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the two-day summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. "I expect there will be speculation about the reasons for Xi's absence," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Hass. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that Indian Prime Minister Narendra Modi will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel, is also skipping the meeting. A source familiar with the negotiations said the BRICS countries were divided over how to respond to the wars in Gaza and between Iran and Israel. Iranian negotiators were pushing for a tougher collective stance that goes beyond referencing the need for the creation of a Palestinian state and for disputes to be resolved peacefully. But one diplomatic source said the text would give the "same message" that BRICS delivered in June when Iran was being bombed by Israel and the United States, expressing "concern." Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia.
Euronews
15 hours ago
- Euronews
EU Commission bewails 'unfair' Chinese Cognac duties
China's imposition of anti-dumping duties on European Cognac is "unfair" and "unjustified", a European Commission spokesperson said on Friday, underscoring a downtick in relations ahead of an EU-China summit scheduled for the end of July. 'China's measures are unfair, we believe they are unjustified, we believe they are inconsistent with the applicable international rule and are thus unfounded,' Commission spokesperson Olof Gill said on Friday. The Asian giant has announced anti-dumping duties of up to 34,9% over EU brandy for a period of five years starting from 5 July 2025, sparing some of the largest EU Cognac producers which had made minimum price commitments, such as Remy Cointreau, Pernod Ricard and LVMH's Hennessy. The Chinese launched an investigation into brandy last year in retaliation for tariffs imposed by the EU on Chinese electric vehicles. It was followed by the announcement of several other investigations into EU pork and dairy products, which have not yet been closed. Anti-dumping duties were also imposed in May on some EU industrial plastics. Gill added that the duties on EU brandy were 'part of a worrying pattern of China abusing trade defence instruments, starting and conducting investigations on the basis of questionable allegations and insufficient evidence, all this within a short period of time.' This blow to EU brandy comes as some media report that China has cancelled the second day of the EU-China summit scheduled for 24 and 25 July. The Commission's chief spokesperson Paula Pinho refused to confirm the cancellation, arguing that the summit's agenda 'has not been agreed yet' by the EU and China. Points of contention are increasing between the two, despite hopes for a diplomatic reset born of the jeopardy both sides face in the face of an ongoing tariff dispute with the US. The South China Morning Post reported on Friday that Chinese Foreign Minister Wang Yi told EU's top diplomat Kaja Kallas it did not want to see a Russian loss in Ukraine because it feared the US would then shift its whole focus to Beijing.
