Targeting Brandy Imports: China Escalates Tensions with EU

Written by Kathrine Frich

Jul.10 - 2024 12:19 PM CET

Photo: Shutterstock
Photo: Shutterstock
The trade dispute between China and the European Union has taken a sharper turn

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The trade dispute between China and the European Union has taken a sharper turn with Beijing intensifying its antidumping probe into European brandy imports.

Retaliatory Measures

According to EL Economista this move follows Brussels' imposition of tariffs on electric vehicles and China's retaliatory measures on pork product exports. Scheduled for July 18th, a public hearing will delve into the industrial impact, causes, and public interest related to the importation of these products, according to China's Ministry of Commerce.

Initiated on January 5th, the antidumping investigation coincides with the provisional implementation of EU tariffs on Chinese vehicles. French giants like Remi Cointreau and Pernod Ricard saw significant stock market declines when the investigation began, indicative of potential repercussions for the industry.

Broader Geopolitical Tensions

Luxury conglomerate LVMH, owner of Hennessy brandy, views China's actions as retaliatory, especially in response to EU tariffs on electric vehicles. They emphasize that their pricing practices are fair and not below market rates.

Advocating for EU unity in the trade dispute, they argue that China's retaliatory measures are a consequence of broader geopolitical tensions, rather than specific market conditions.

France's Ministry of Economy has pledged to defend French companies, denying allegations of dumping practices. Market analysts warn that China's strategic tariffs on agricultural products and luxury goods like brandy are intended to signal Beijing's readiness to counter protectionism from Europe.