China is introducing “temporary anti-dumping measures” on brandies, such as cognac, imported from the European Union. After rising trade tensions, Beijing also announced such measures last month. It was not immediately clear on Monday whether this was a new policy or an extension of the existing measures.
Since October 11, importers of brandy have had to pay a deposit of up to 39 percent of the value. This should serve to enable possible future import duties to be written off retroactively. The Chinese Ministry of Commerce published a statement on Monday using almost the same wording. It is also not clarified when the measures will expire.
In January, China launched an anti-dumping investigation into European brandy in response to the EU’s investigation into government support for Chinese electric cars. In August, the Trade Ministry concluded that there was indeed dumping of European brandy on the Chinese market, but it waived import duties for the time being. After Brussels gave the green light at the beginning of October for the introduction of additional duties on the import of electric cars from China, China still came up with these anti-dumping measures.
It is no coincidence that brandy, and specifically cognac, is being targeted. The French drink accounts for about 95 percent of Chinese imports of European brandy and exports to China represent about a quarter of France’s cognac exports. France – with the car makers Renault and Stellantis – was one of the leaders in the European research into cheap Chinese electric cars.
Beijing is also conducting anti-dumping investigations into pork and dairy products. The Dutch FrieslandCampina is also being looked at. The dairy group, which is also active in Belgium, was put on an investigation list by China in mid-October together with two other European dairy exporters and may have to provide information.