Starting from 15 November, the Chinese government will impose temporary anti-dumping duties on imports of brandy from the European Union, the Ministry of Commerce of China reports. The decision was made on the basis of an investigation that lasted from January 2023 and revealed that European producers were undercutting brandy prices, which, according to Chinese regulators, threatens local producers.
Under the new measures, EU importers will have to pay a duty of 30.6% to 39% depending on the established level of dumping margin for each company. The restrictions apply to brands made by distilling grape wine and packaged in containers of up to 200 litres. Among the well-known brands that will be affected by these duties are Martell, Jas Hennessy, and Remy Martin.
The anti-dumping investigation was China’s response to the European Union, which raised tariffs on imports of Chinese electric vehicles by more than 45% on 30 October following an anti-subsidy investigation. France was one of the key supporters of this decision, while Germany opposed it.
These measures may have the greatest impact on France, which supplies the bulk of European brandy to China. China is an important market for European spirits exports, and the potential rise in brandy prices could significantly reduce supplies.
In addition to brandy, Chinese authorities are also conducting anti-dumping investigations into other EU products, including pork and dairy products. For its part, the European Commission continues to analyse the legality of Chinese subsidies for solar panels and wind turbines that provide renewable energy.
Although China claims that the new anti-dumping measures are temporary, the timing of their cancellation has not yet been specified.
