In a retaliatory action following the European Union's decision to impose tariffs on Chinese-made Electric Vehicles (EVs), China announced temporary anti-dumping measures on brandy imports from the EU, effective October 11. The Chinese Ministry of Commerce stated that these measures are necessary due to the "substantial damage" caused by the dumping of European brandy, affecting China's domestic brandy industry.
The new regulations will require importers to provide security deposits for brandy shipments from the EU upon arrival at Chinese customs. Major French luxury Cognac brands, including Hennessy and Remy Martin, are expected to be the hardest hit by this decision. Paris has been identified as a key proponent of the EU's tariffs on Chinese EVs, leading to heightened scrutiny of French exports to China.
The temporary measures come after the Europeon Union (EU) voted to impose duties on Chinese vehicles recently. This move was initiated to protect European automakers from the influx of cheaper Chinese EVs. However, this has escalated tensions between Brussels and Beijing, leading to fears of further retaliatory actions.
The Chinese Ministry of Commerce hinted that more industries may face similar measures, with investigations into EU pork products still ongoing. There are also talks of potential increases in tariffs on large-engine vehicle imports, which could severely impact German automakers.
