China will impose steep anti-dumping duties on European brandy starting July 5, but has granted exemptions to major French cognac producers, signaling a selective approach amid rising EU-China trade tensions.
Beijing’s final ruling includes five-year duties ranging from 27.7% to 34.9%, averaging 32.2%, down from the provisional 39% introduced last October, News.Az reports, citing Politico.
However, top French producers, Rémy Cointreau, Pernod Ricard, and LVMH’s Hennessy, will be exempt, provided they price their exports above a set threshold.
The move, China’s retaliation against EU tariffs on Chinese electric vehicles, reflects diplomatic friction ahead of the July 24–25 EU-China summit in Beijing. Reports suggest Beijing may cancel part of the summit in protest.
Brussels criticized the duties as unjustified and inconsistent with global trade rules. “China’s measures are unfair and unfounded,” said EU trade spokesperson Olof Gill, warning of a broader trend in China's misuse of trade defense tools.
The European Commission launched its own investigation into Chinese EV subsidies in 2023, prompting China’s counter-investigation into EU brandy, widely seen as targeting France, which backed the EV probe.
Despite the exemptions, industry leaders say damage remains. “The measures still pose a significant barrier to legitimate trade,” said spirits EUROPE. France’s cognac board pledged continued efforts to restore full access to the Chinese market.
The decision comes as Chinese and EU officials continue talks over EV import pricing, with no breakthrough yet reached.
