China has imposed temporary anti-dumping measures on brandy imports from the EU, affecting major French brands like Hennessy and Remy Martin, shortly after the EU voted to impose tariffs on Chinese-made electric vehicles (EVs), Reuters reports.
The Chinese Commerce Ministry stated that EU brandy dumping has harmed its domestic industry, prompting new measures that require importers to pay security deposits ranging from 34.8% to 39% of the import value, significantly increasing costs. France criticized the move, calling it a violation of free trade, and intends to challenge it at the World Trade Organization.
The measures could lead to a 20% price increase for consumers in China and a decline in sales volume. Shares in affected companies like LVMH, Pernod Ricard, and Rémy Cointreau fell significantly following the announcement.
The new measures highlight the growing economic friction between China and the EU. China is also investigating EU pork products and considering higher tariffs on large-engine vehicles, which would affect German manufacturers. French President Emmanuel Macron characterized China’s actions as retaliation for the EU’s stance on EV tariffs.
