As trade relations become strained between China and the European Union, Beijing has announced the imposition of new temporary anti-dumping measures on European brandies, including cognac. An initiative seen by France as a response to European decisions targeting Chinese electric vehicles.
Cognac targeted by Chinese retaliatory measures
China unveiled “ temporary anti-dumping measures » targeting wine-based spirits from the European Union, of which cognac represents almost all imports. These measures come against a backdrop of growing trade tensions between China and the EU, particularly around recent decisions by Brussels to impose customs duties on Chinese electric cars, accused of benefiting from subsidies deemed unfair.
These new restrictions, effective from this Friday, are in addition to those already in place since October 11. Since this date, importers of European brandies into China have had to pay a deposit to Chinese customs as part of an anti-dumping investigation. Beijing in fact accuses European producers of selling these alcohols at prices lower than their value, a practice which would harm local competition.
For the French cognac industry, this situation could have dramatic consequences. China, where cognac is enjoying growing popularity, is a crucial market for French producers. “ The political character is obvious », Estimated a French diplomatic source at the end of October, deploring that the wine sector had been “ sacrificed » for the benefit of the automobile industry, due to France's support for European measures against Chinese electric vehicles.
Paris calls for negotiation
Faced with this situation, the French Minister for Foreign Trade, Sophie Primas, reacted by indicating that France remained open to negotiations with Beijing. However, she warned that France stood ready to use “ all possible technical and legal measures » if the exchanges did not make it possible to resolve the situation. Ms Primas assured that discussions with the Chinese authorities remained “ clearly open » in order to try to resolve the crisis.
These new tensions come in a context where China is also carrying out anti-dumping investigations targeting other European products, notably pork and dairy products. For the cognac industry, already weakened by fluctuations in international trade and dependence on exports to the Chinese market, the future could be uncertain if negotiations do not succeed quickly.
With these measures, China is sending a strong message to the European Union, displaying an increasingly protective trade policy. While waiting for an outcome, French cognac producers, who represent a significant share of brandy exports to China, are scrutinizing the next diplomatic moves to guarantee their access to this key market.
