2024-01-06 02:08:27
Strong alcohol at the heart of a Sino-French war. China said on Friday it had launched an anti-dumping investigation into wine spirits, such as cognac, imported from the European Union (EU), amid trade tensions between the two economic powers.
According to the Chinese Ministry of Commerce, this initiative follows a complaint filed in November by the China Liquor Association, on behalf of the Chinese wine spirits sector.
“This request contained the evidence necessary to initiate an anti-dumping investigation under” Chinese regulations, the ministry said in a statement published on its website.
The investigation launched this Friday focuses on suspicions of dumping between October 1, 2022 and September 30, 2023, as well as potential damage to the sector in China between January 1, 2019 and September 30, 2023. It must be completed before January 5, 2025 but could possibly be extended by six months in the event of “special circumstances”, specifies the press release.
“Our business practices are fully compliant”
Dumping is a practice which consists in particular of selling abroad at prices lower than those charged on the national market. In 2022, China imported more wine brandy than any other spirit, indicates a report from Daxue Consulting, according to which most imports came from France.
Wine spirits produced in the EU include cognac and armagnac, both produced on French soil.
“This investigation is part of a commercial disagreement between the European Union and China on other industrial sectors, unrelated to our activity,” declares the National Interprofessional Cognac Bureau in a transmitted press release, where it assures that “Cognac producers will cooperate fully with the Chinese authorities to answer any questions they may have”.
“We are confident that our products and business practices are fully compliant with Chinese and international regulations and that the EU and China will find a constructive way to resolve any bilateral disputes, as has happened in the past over other subjects,” he adds.
“Outright protectionism” versus “fair competition”
Relations between Beijing and Brussels have become strained since the European Union announced that it was seeking to reduce its commercial dependence on China, particularly in the field of technology.
Concerned by competition from Chinese electric vehicles on the European market and pressed by France, the President of the European Commission Ursula von der Leyen announced in September the opening of an investigation into Chinese subsidies for electric cars. China denounced this investigation, judging it as “pure protectionism” and stressed that it was likely to harm Sino-European trade relations.
Questioned on Friday at a press conference in Brussels, Ms von der Leyen did not comment specifically on the Chinese investigation into alcohol, but insisted on the importance of having “fair” competition with China. .
“There must be transparency regarding the type of subsidies granted and the circumstances in which they are granted,” continued the official. She added that the EU had agreed with Chinese leaders at a summit in December to “examine point by point all complaints” about the difficulties faced by European companies in accessing the Chinese market.
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