China's Ministry of Commerce (MOFCOM) announced that Chinese investigating agencies decided to impose temporary anti-dumping measures against brandy imported from the EU. Starting on November 15, importers must submit deposits or letters of guarantee to China's customs authorities based on the dumping margins as specified in the announcement. On January 5, 2024, China decided to launch an anti-dumping investigation into brandy imported from the EU following a request from the domestic brandy industry. On August 29, MOFCOM said that a preliminary assessment showed that the imported brandy from the EU involves dumping, and the domestic brandy industry is under substantial threat of damage, and there is a causal relationship between the dumping and the substantial threat of damage, read the announcement.
The investigated products are spirits obtained by distilling grape wine in containers holding less than 200 liters, which are usually called brandy and mainly used as an alcoholic beverage for human consumption. The announcement detailed companies for whose products importers must provide deposits or letters of guarantee, with dumping margins ranging from 30.6% to 39.0% for each company. Sampled companies included Martell, whose margin ratio was 30.6%, Jas Hennessy (39.0%), and E. Rémy Martin (38.1%). The companies that cooperated with the investigation had a dumping margin of 34.8%, while the rest were subject to a dumping margin of 39.0%. “Imposing temporary anti-dumping measures against EU brandy is consistent with WTO procedures and international practice,” Jian Junbo, Deputy Director of the Center for China-Europe Relations at Fudan University's Institute of International Studies, told the Global Times.
Chinese Commerce Minister Wang Wentao on November 3 met with visiting French trade official Sophie Primas in Shanghai, noting that in contrast to the EU's abrupt launch of an anti-subsidy investigation into Chinese EVs without any industry request, China's trade remedy probes into European brandy, pork and dairy products were all initiated in response to applications from China's domestic industries in full compliance with WTO rules and Chinese laws. Minister Wang emphasized that the EU's anti-subsidy investigation into Chinese EVs is significantly hindering cooperation between the Chinese and European automotive industries and is a major concern for both sides.
