Industry Officials Including Martell and Hennessy Convene on 18th
Brandy Retaliatory Tariff Imposition Seems Imminent
China's Ministry of Commerce announced on the 5th that it plans to hold an anti-dumping hearing on brandy imported from the European Union (EU). This is interpreted as a retaliatory measure against the EU's imposition of additional tariffs on Chinese electric vehicles.
In a statement on the same day, the Ministry of Commerce said, "The Trade Remedy Investigation Bureau of the Ministry of Commerce will convene industry stakeholders such as Martell and Hennessy on the 18th to hold a hearing related to the anti-dumping investigation of brandy imported from the EU." It added, "The hearing will cover topics such as industrial damage, causes and effects, and public interest in the brandy anti-dumping investigation."
Earlier, in January, when the European Commission decided to investigate whether Chinese electric vehicle manufacturers received unfair subsidies, China's Ministry of Commerce mentioned brandy distilled wine (brandy) contained in containers under 200L (53 gallons) as a target for anti-dumping investigation, countering the move. At that time, experts analyzed that the focus was on European brandy, mainly French products such as Cognac.
This announcement of the hearing came six months after the decision on the anti-dumping investigation, and it is interpreted as a retaliatory measure against the EU's decision to raise tariffs on Chinese electric vehicles up to 47.6% starting from the 5th. Some optimistic views suggest that the Chinese government might partially reflect the opinions or demands of European brandy manufacturers during this hearing, but the prevailing view is that it is likely a formal procedure to proceed with imposing anti-dumping tariffs.
The Chinese government has strongly opposed the EU's investigation into unfair subsidies on its electric vehicles and the punitive tariffs, warning that it will take all necessary measures to protect its national interests. Considering that the EU's provisional countervailing tariff rate on Chinese electric vehicles will be temporarily applied for four months from the 5th until November, there is also an interpretation that China intends to pressure EU member states ahead of the formal vote scheduled for November.
At a regular briefing the day before, He Yadong, spokesperson for China's Ministry of Commerce, said, "On the 22nd of last month, Minister of Commerce Wang Wentao and Valdis Dombrovskis, the EU Executive Vice-President, held a video conference and initiated negotiations based on facts and rules." He added, "(With) four months remaining until the final decision on the EU tariffs, we hope the EU will show sincerity by facing China directly and push negotiations closely so that a mutually acceptable solution can be reached promptly."
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