China announced on Monday the imposition of “temporary anti-dumping measures on brandies imported from the European Union (EU), including cognac, following a similar announcement last month, against a backdrop of trade tensions between Beijing and Brussels. It was not immediately clear on Monday whether these measures, which will be imposed from Friday, were new or an extension of existing ones.
Since October 11, China has been requiring importers of European brandies (wine-based eaux-de-vie), of which cognac accounts for 95% of the total, to lodge a bond with Chinese customs, as part of an anti-dumping investigation. The latter is widely perceived as a retaliatory measure following France’s strong support for the EU’s imposition of customs surcharges on electric cars imported from China.
“The investigating authorities (on European brandys) have decided to implement temporary anti-dumping measures in the form of a bond or letter of guarantee.”said the Chinese Ministry of Commerce in a statement on Monday. A text with almost identical wording had been published by the Ministry on October 8, leading to the measures taken three days later. Monday’s statement, presented as a “complementary announcement”does not specify the expiry date of these new temporary measures.
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French interprofession says it has been “sacrificed
In October, the European Commission adopted a regulation imposing additional customs duties on electric cars imported from China, accused of unfair competition. In France, the cognac interprofession believes it has been “sacrificed” by the government in favor of the automotive industry. A French diplomatic source had strongly denounced these Chinese measures to AFP at the end of October. “the political nature of which is obvious”..
The imposition of customs surcharges on cognac could be devastating for the sector, blocking the product’s access to the Chinese market. “We are ready to take all possible technical and legal measures”. if necessary, said French Minister for Foreign Trade Sophie Primas last week. However, she indicated that negotiations with Beijing on cognac were still ongoing. “clearly open”.. In addition to brandies, China is also conducting anti-dumping investigations into pork and dairy products imported from the EU, posing a threat to these sectors.