China Says To Take Anti-dumping Measures Against EU Brandy Imports
Mohammad Ali (@ChaudhryMAli88) Published October 08, 2024 | 02:30 PM
Beijing, (APP - UrduPoint / Pakistan Point News - 8th Oct, 2024) China said on Tuesday it would impose anti-dumping measures on brandy imported from the European Union, marking the latest salvo in an escalating trade row between Beijing and Brussels.
The two are major economic partners but have butted heads in recent months over Beijing's generous subsidies for its domestic industries.
Brussels argues that the support undermines the principle of free competition and helped drive down the prices of Chinese exports, undercutting European competitors.
Beijing has denied the claims and accuses Brussels of protectionism.
China launched an investigation this year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle subsidies.
Beijing said in August it would not impose provisional tariffs on brandy makers, even though it had found evidence of dumping, but did not rule out subsequent measures.
From Friday, operators will have to pay a "corresponding guarantee" to Chinese customs when importing EU brandy into the country, the commerce ministry in Beijing said.
It 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.
It said the probe also established "a causal relationship between the dumping and the threat of substantial damage".
The ministry released a list detailing the rates each company would expect to pay, ranging from 30.6 percent for cognac house Martell to 39 percent for Jas Hennessy and 38.1 percent for Remy Martin.
Shares in French spirits giants Remy Cointreau and Pernod Ricard fell sharply in Paris on Tuesday following the news.
