China defends anti-dumping measures on EU brandy amid trade tensions

China Dumping duty: China said Wednesday its latest anti-dumping measures targeting brandies imported from the European Union were "legitimate trade remedy measures" amid increasing trade tensions with Brussels, following a temporary restriction on imports of several EU brandy brands, including some popular French labels such as Hennessy and Remy Martin.

The measures were taken less than a week after the European Union, consisting of 27 member states, voted to slap tariffs on Chinese-made electric vehicles (EVs), in what is the escalation of a tense trade spat between the two regions to its worst level in a decade. The Chinese commerce ministry cited preliminary conclusions from an investigation as revealing that the dumping of EU brandies threatened to inflict "substantial damage" on China's domestic industry.

Responding to the actions of the EU towards Chinese EVs, the ministry condemned the action, saying the bloc lacks a "factual and legal basis" and asserting that these acts run contrary to WTO rules. China has lodged a strong protest with the WTO regarding the EU's tariff decision.

China has also sought information on the rising trade war. The commerce ministry announced that an ongoing investigation into pork products imported from the EU, on anti-dumping and anti-subsidy grounds, would yield "objective and fair" findings. China is also considering a move to increase its tariffs on imported large-engine automobiles, which will primarily affect German companies. Last year, German exports of vehicles with engines of 2.5 litres or larger to China reached $1.2 billion.

As tensions have increased, both parties explore a pretty complex situation concerning trade relations. And the result is sure to structure future economic interaction between China and the EU.