To respond to measures imposed by the European Union, Beijing announced a surcharge on brandies imported from European countries, including French cognac. To find a favorable outcome, the President of the Republic met with his Chinese counterpart.
Last July, the European Union decided to apply customs duties of up to 37.6% on imports of electric vehicles manufactured in China. The objective of such a maneuver is above all to relieve the automotive sector in Europe, which has around 14 million jobs. By overtaxing Chinese vehicles, the EU wants to ensure that electric vehicles built in Europe become more attractive.
In response, Beijing announced temporary anti-dumping measures, affecting brandies produced in Europe and imported by China, including French cognac. As a reminder, in terms of French cognac exports, 25% are absorbed by China. With 72,500 jobs, the French sector represents a turnover of 3.35 billion euros.
To find a solution favorable to both countries, French President Emmanuel Macron spoke with his Chinese counterpart on the sidelines of the G20 in Brazil. Tuesday, November 19, the head of state indicated that he and the Chinese president had done everything to “ find a favorable outcome » to the question.
Michel Barnier will travel to China to develop the issue of cognac taxation
« I know how important this is for our cognac and Armagnac producers, and I defended their positions. We have decided with the Chinese president to carry out the work technically with a lot of transparency and commitment and that we can in the first quarter of next year find a favorable outcome which could be done in an exchange between our Prime Ministers », insisted on explaining Emmanuel Macron.
With its 25%, China is the second largest customer for cognac, just behind the United States (38% of exports). “ I hoped that Prime Minister Barnier could go to China in the first quarter of next year to see his Chinese counterpart », announced the head of state. With this scheduled visit of the Prime Minister, the objective is above all “ clear up misunderstandings » et « reassure our producers ».
On the question of the surcharge on Chinese electric cars, Emmanuel Macron indicated that he “explained to the Chinese president, as I did last May, that the issue of electric vehicles is a European initiative that we support and that it did not have an aggressive vocation ».
