China says it is imposing anti-dumping measures on brandy imports from the European Union, marking the latest development in the growing trade dispute between Beijing and Brussels. The decision follows the EU's recent imposition of steep tariffs on Chinese electric vehicles (EVs). France is likely to be the most impacted by China's new measures, as it is the largest exporter of luxury drinks to China such as cognac and armagnac.
China launched an investigation this year into EU brandy imports into China, months after the bloc undertook a probe into Chinese EV subsidies. Beijing it would not impose provisional tariffs on brandy makers, even though it had found evidence of dumping, but did not rule out subsequent measures. But after the EU on Chinese EV's last week, Beijing decided to retaliate with extra tax on EU liquor and operators will have to pay a "corresponding guarantee" to Chinese customs when importing EU brandy into the country, the commerce ministry in Beijing said .
The amount would be based on calculations involving prices approved by customs, as well as import taxes. The investigation had "preliminarily determined that imports of certain brandy originating from the European Union were being dumped, threatening substantial damage to the domestic brandy industry," the ministry said. Read also:.