China Extends Anti-Dumping Investigation into EU Brandy

BEIJING (Reuters) – China's commerce ministry announced on Wednesday it will extend its anti-dumping investigation into brandy from the European Union (EU) by three months, which is less than the full extension allowed.

The investigation, initiated on January 5, was slated for completion in one year. It will now conclude by April 5 due to the "complexity" of the case, as stated by the ministry in a brief announcement.

Previously, the ministry mentioned that extensions could reach six months under special conditions.

Initial findings indicate that dumping practices of EU brandy may negatively impact China's domestic industry. In October, the ministry had imposed temporary measures on EU brandy imports, affecting renowned French brands such as Hennessy and Remy Martin.

This investigation is perceived as retaliation against France, following its support for EU tariffs on Chinese-made electric vehicles. French President Emmanuel Macron referred to the probe as "pure retaliation".

Under the new Chinese measures, importers of EU brandy will need to pay security deposits close to 40%, increasing the upfront costs of importing brandy from the EU.

France's trade ministry criticized the measures as "incomprehensible" and as a violation of free trade principles.

Last month, the EU Commission announced it had formally taken the provisional Chinese anti-dumping measures to the World Trade Organization (WTO).

In the previous year, French brandy exports to China reached $1.7 billion, representing 99% of the nation's brandy imports.