Beijing will not impose additional tariffs on brandy imports from the EU. At least for now. In the midst of escalating trade tensions between the Asian giant and the EU bloc, following Brussels’ announcement that it would impose tariffs of up to 36.3% on imports of Chinese electric vehicles to the EU, Xi Jinping’s government announced on Thursday that will not impose anti-dumping measures on brandy imported from Europe.
The Chinese Ministry of Commerce has conducted an investigation into European brandy, saying that Community producers had engaged in practices of dumping when marketing products with margins of 30.6% to 39%. Actions that would limit competition from local production and pose a risk to the Chinese sector.
Although the executive of the Asian country recognizes the existence of “dumping in brandy imported from the EU and the domestic industry risks suffering considerable damage,” decided that “No temporary measures will be taken anti-dumping in this case for the moment,” as explained in a press release.
Beijing’s investigation into European brandy dates back to January. Xi Jinping’s government was responding to Brussels’ investigation into electric vehicle batteries imported from China to the EU, which it said benefited from government subsidies that allowed them to sell products at lower prices on the Community market. The European Commission has accused the Asian giant of engaging in unfair commercial practices and warned of the risks for manufacturers in the Twenty-Seven. A particularly sensitive issue for the important German automobile industry.
In any case, Beijing’s announcement allows European producers to brandy breathes with some relief, especially the French, who would be most affected by the measure Overproduction in the Chinese market and the decline in domestic demand already represent a certain risk for European manufacturers that market in the Asian country. Therefore, if the Asian giant decided to impose additional customs duties, it would jeopardize the viability of the sector.
But Brussels has also taken steps toward conciliation with Beijing. It is true that its investigation into Chinese electric vehicles resulted in tariffs of up to 36.3% on imports from Beijing, but the European Commission has lowered that figure. This maximum of 36.3% announced a few weeks ago and represents a figure lower than the 38% initially proposed in June. To this figure must be added the 10% that already applies to this type of import.
In any case, it must be considered that this week, the government of Canada has announced that it will impose 100% tariffs on imports of electric vehicles from China. It is not the first country to take this measure, the United States took the initiative by deciding to apply a 100% customs duty on these products. Other countries have increased customs duties on these Asian products, notably India and Brazil.
Brussels is also investigating subsidies that China provides to its solar panel, wind turbine and medical equipment industries. Although Beijing was quick to respond with similar measures. In addition to the brandy sector, it is also carrying out an analysis of imports of dairy products from the European market and pork. The latter has just special importance for Spainthis sector being one of the main segments of agri-food exports and the Asian giant one of the main destination markets.
Beijing’s reception to the tariffs has not been entirely positive. While Brussels accuses China of applying “unfair” subsidies and giving its companies a competitive advantage, the Asian giant has called the European tariffs “protectionists” and “witch hunts”. China was quick to respond. On August 9, it filed an appeal with the body demanding that the EU impose, starting July 5, provisional customs tariffs that, according to it, “have no legal basis.”
