China to require EU brandy exporters to raise prices or face tariffs

Almost each EU brandy is cognac produced successful France, exports of which are worthy 1.4 cardinal euros ($1.6 billion) per year. Photo: GEORGES GOBET / AFP
Source: AFP

China volition necessitate large European brandy exporters to rise prices oregon hazard anti-dumping taxes of up to 34.9 percent from Saturday, the latest salvo successful its long-running commercialized spat with the bloc.

Almost each EU brandy is cognac produced successful France, exports of which to China are worthy 1.4 cardinal euros ($1.6 billion) per year.

Beijing launched an probe past twelvemonth into EU brandy, months aft the bloc undertook a probe into Chinese electrical conveyance (EV) subsidies.

It said it had determined successful a preliminary ruling that dumping had occurred and imposed "temporary anti-dumping measures" connected imports of the alcoholic beverage -- moves present costing the industry 50 cardinal euros per month.

Beijing's commerce ministry said connected Friday that China's tariff committee had "decided to enforce anti-dumping duties connected imports of applicable brandy originating successful the EU" from Saturday.

But Beijing said successful an explanatory enactment that respective large French cognac producers had signed onto a terms committedness to debar the tariffs -- arsenic agelong arsenic they merchantability astatine oregon supra an agreed minimum price.

French liquor elephantine Jas Hennessy would beryllium deed with levies of 34.9 percent if it reneges connected the deal, it said.

Remy Martin volition beryllium deed with 34.3 percent and Martell 27.7 percent.

"The determination to judge the terms committedness erstwhile again demonstrates China's sincerity successful resolving commercialized frictions done dialog and consultation," a commerce ministry spokesperson said successful a statement.

China has sought to amended relations with the European Union arsenic a counterweight to superpower rival the United States.

But heavy frictions stay implicit economics -- including a yawning commercialized shortage of $357.1 cardinal betwixt China and the EU, arsenic good arsenic Beijing's adjacent ties with Russia contempt Moscow's warfare successful Ukraine.

The caller levy threats travel arsenic Chinese apical diplomat Wang Yi has held fraught meetings with his counterparts during a circuit of Europe this week.

They volition apt beryllium precocious connected the docket erstwhile helium meets French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot connected Friday day successful Paris.

Bitter sensation

A commercialized enactment betwixt Beijing and the bloc erupted past summertime erstwhile the EU moved towards imposing hefty tariffs connected electrical vehicles imported from China, arguing that Beijing's subsidies were unfairly undercutting European competitors.

Beijing denied that assertion and announced what were wide seen arsenic retaliatory probes into imported European pork, brandy and dairy products.

The bloc imposed other import taxes of up to 35 percent connected Chinese EV imports successful October.

Beijing aboriginal lodged a ailment with the World Trade Organization, which said successful April that it would acceptable up an adept sheet to measure the EU's decision.

China and the EU are scheduled to clasp a acme this period to people the 50th day of the constitution of diplomatic ties.

Bloomberg News reported connected Friday, citing unnamed sources, that Beijing intends to cancel the 2nd time of the summit.

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Source: AFP