Portugal Colonial - China says to impose anti-dumping measures on EU brandy

China announced provisional tariffs on EU brandy imports last month, saying the alleged "dumping" threatened "substantial damage" to the domestic industry.

And Beijing's commerce ministry said in a statement Monday that authorities have "decided to implement temporary anti-dumping measures in the form of a cash deposit or letter of guarantee" against European brandy products.

The measures, based on calculations involving prices approved by customs, as well as import taxes, follow a similar announcement made by the ministry on October 8.

It was not immediately clear whether these measures -- which come into effect on Friday -- were new or an extension of existing ones.

France -- Europe's leading producer of brandy -- had described the measures announced last month as political, designed to put the EU under pressure after it imposed hefty tariffs on Chinese electric vehicles over unfair competition claims.

Monday's "supplementary announcement" did not say when the latest temporary measures are due to expire.

China launched an investigation in January into brandy imported from the EU after the bloc undertook a probe into Chinese EV subsidies.

The EU decided last month to impose extra tariffs on Chinese-made EVs after an anti-subsidy probe concluded Beijing's state subsidies were unfairly undercutting European automakers.

China imported more brandy than any other spirit in 2022, with most of it coming from France, according to a report by research group Daxue Consulting.

French cognac makers have begged Paris to put an end to the spat, describing themselves as "hostages".

France's foreign trade minister Sophie Primas this month said that Paris was prepared "to take all possible technical and legal measures" in response to the tariffs, following a meeting with a Chinese counterpart.

But she also said she believed the window for negotiation with Beijing over tariffs on European brandy was open.

A second phase of consultations over the measures between the EU and China over the anti-dumping recently began.

As well as the provisional brandy tariffs, Beijing has also launched anti-dumping probes into some European pork and dairy imports.

Brussels is also investigating Chinese subsidies for solar panels and wind turbines.

N.Esteves--PC