- China will forgo imposing retaliatory tariffs on EU-origin brandy.
Amidst the ongoing dispute with the EU over the import of electric cars, China has decided to hold back on slapping retaliatory tariffs on European brandy for now. The Chinese Ministry of Commerce revealed this, mentioning that although signs of below-cost selling of EU brandy have been spotted, no immediate action will be taken.
China initiated an anti-dumping probe into brandy in January, responding to the EU initiating an investigation into subsidies for Chinese electric vehicles. Brussels later declared intentions to impose preliminary taxes, but the EU Commission needs to collaborate with member states before making a call, with a conclusion expected by the end of October.
EU stays within fair trade boundaries
The EU Commission has acknowledged China's statement, with a representative affirming, "We're closely tracking the investigation. We're committed to aiding our EU industry throughout this investigation." The Commission maintains that EU brandy exports to China adhere to all pertinent World Trade Organization guidelines and have no connection with the EU's proposed retaliatory tariffs on Chinese electric vehicles.
Analysts conclude that China's reluctance to institute brandy tariffs might indicate an openness to negotiations. However, other investigations into EU products are ongoing in China. In July, the Chinese Ministry of Commerce launched probes into imported EU pork and by-products.
More probes ongoing in China
Last week, China also launched an anti-subsidy investigation into imported EU dairy products, targeting items like fresh or processed cheese, as per the Ministry of Commerce.
In reference to the EU's proposed additional taxes on Chinese electric vehicles, Beijing has denounced Brussels for protectionism, charging that it is disregarding World Trade Organization rules and inadvertently inflicting harm upon itself and others.
The EU's assurance of compliance with fair trade regulations might help mitigate the escalating conflict over electric cars and brandy, as they both adhere to World Trade Organization guidelines. Despite ongoing investigations into EU pork and dairy products in China, a temporary pause on retaliatory tariffs on brandy signals potential for diplomatic resolution.
