China announced anti-dumping measures on brandy imports from the European Union (EU) yesterday, in what appears to be a tit-for-tat response to the bloc’s imposition of tariffs on Chinese-made electric vehicles (EVs)
According to multiple media reports, the Ministry of Commerce stated that a preliminary investigation found that EU brandy imports threatened “substantial damage” to China’s domestic brandy industry.
From 11 October, importers of EU brandy will be required to pay security deposits ranging from 34.8 percent to 39 percent of the import value.
[See more: No deal struck between Beijing and Brussels over electric vehicles]
Among the hardest hit are French bands Hennessy and Remy Martin, whose importers will face security deposit rates of 39 percent and 38.1 percent respectively. France, which has supported tariffs on EVs from mainland China, accounted for 99 percent of China’s brandy imports last year, with shipments valued at approximately $1.7 billion.
Beijing’s move follows the EU’s decision to impose tariffs on Chinese EVs this month, with rates as high as 35.3 percent, in addition to the standard 10 percent import duty for cars.
Chinese officials say the EU tariffs breach World Trade Organization regulations. However, the European Commission has expressed its willingness to explore a negotiated solution.
