China Delays Anti-Dumping Investigation On European Brandy - Details Here

China's Ministry of Commerce announced on Wednesday that it will extend its anti-dumping investigation into brandy imported from the European Union by three months. Initially set to conclude within a year of its launch on January 5, the probe will now continue until April 5 due to its "complexity," according to the ministry’s statement. The extension is shorter than the six-month maximum previously outlined under special circumstances.  

The investigation has already produced preliminary findings, with the ministry stating in October that EU brandy dumping poses a threat to China's domestic industry. As a result, temporary measures were imposed, requiring importers to pay security deposits of nearly 40 per cent of the shipment value, significantly increasing the cost of importing EU brandy. Major French brands such as Hennessy and Rémy Martin have been notably affected by these measures.  

The probe is widely perceived as a retaliatory move following France’s support for EU tariffs on Chinese electric vehicles. French President Emmanuel Macron has criticised the investigation, calling it “pure retaliation.” Meanwhile, France's trade ministry described the Chinese measures as "incomprehensible" and a breach of free trade principles.  

In response, the European Commission formally brought China’s provisional anti-dumping measures before the World Trade Organization last month.  

China is a key market for French brandy, with shipments reaching $1.7 billion last year, accounting for 99 per cent of China’s brandy imports. The outcome of the extended investigation is likely to have significant implications for trade relations and the future of brandy exports to the region.  

(With Reuters Inputs)