China extends anti-dumping probe into EU brandy amid rising trade tensions
CHINA – The Chinese Ministry of Commerce has announced an extension of its anti-dumping investigation into EU brandy imports, signaling a potential shift in trade relations between Beijing and Brussels.
The probe, originally scheduled to conclude in January 2025, will now continue until April 5, 2025, citing the complexity of the case.
China launched the investigation in January 2024 after complaints from the China Liquor Industry Association regarding alleged dumping of EU brandy into the Chinese market.
The investigation, which examines imports of EU-origin brandy in containers under 200 liters, initially covered allegations of dumping between October 1, 2022, and September 30, 2023.
In October 2024, China imposed provisional dumping measures on EU brandy imports. These measures require importers to pay a security deposit equivalent to the recommended tariffs upon the arrival of products in China.
The commerce ministry’s preliminary findings indicated that brandy imported from the EU had been dumped into the Chinese market, causing potential harm to the domestic industry.
The ministry has stated that EU exporters have submitted an application for price undertakings, while the Chinese domestic brandy industry has sought legal protection.
It also noted that the extension was made at the request of the EU to ensure cooperation and address the intricacies of the investigation.
The provisional measures have already impacted major EU producers. French spirits company Rémy Cointreau announced price increases for Cognac products in China, citing the additional tariffs.
Similarly, Hennessy, another leading Cognac producer, has begun exploring local bottling options in China to avoid the tariffs.
In response, the European Commission initiated a World Trade Organization (WTO) case in November 2024, challenging China’s provisional measures.
The Commission argued that the measures violated WTO rules, asserting that China had failed to demonstrate any substantial threat of injury to its domestic brandy industry.
The ongoing anti-dumping probe reflects broader trade tensions between the EU and China, which intensified after the EU launched an anti-subsidy investigation into Chinese electric vehicles in September 2023.
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