China's Anti-Dumping Measures Against EU Brandies

BEIJING (Reuters) – China's anti-dumping measures against brandies imported from the European Union are considered "legitimate trade remedy measures," stated the commerce ministry on Wednesday, following the recent implementation of temporary restrictions.

French brands, including Hennessy and Remy Martin, will be affected by these measures, which come shortly after the EU voted for tariffs on Chinese-made electric vehicles (EVs), leading to the largest trade dispute between Beijing and the 27-nation bloc in a decade.

According to China's commerce ministry, preliminary findings from an investigation indicated that EU brandy dumping poses a threat of "substantial damage" to the domestic industry.

On Wednesday, the ministry criticized the EU's actions towards Chinese EVs as lacking factual and legal grounds and violating World Trade Organization (WTO) rules. China has lodged a strong protest with the WTO regarding these matters.

Trade tensions have escalated since the European Commission announced it would move forward with tariffs on China-made EVs, despite opposition from Germany, the bloc's largest economy.

Additionally, the ministry indicated that an ongoing anti-dumping and anti-subsidy investigation into EU pork products will lead to "objective and fair" decisions upon completion.

China is also contemplating increasing tariffs on imports of large-engine vehicles, which would primarily impact German manufacturers. Last year, German exports to China of vehicles with engines 2.5 litres or larger reached $1.2 billion.