Dumping of brandy hurts sector: China

China announced provisional anti-dumping measures on brandy imports from the European Union yesterday, according to a statement from the Chinese commerce ministry, reversing an earlier move amid continued tense trade talks.

China's commerce ministry said preliminary findings of an investigation had determined that dumping of brandy from the European Union threatens "substantial damage" to its own sector.

France's trade ministry said the temporary Chinese measures were "incomprehensible" and violated free trade, and that it would work with the European Commission to challenge the move at the World Trade Organization.

In a sign of the rising trade tensions, China's ministry added in another statement yesterday that an ongoing anti-dumping and anti-subsidy investigation into EU pork products would make "objective and fair" decisions when it concludes. It also said that it was considering a hike in tariffs on imports of large-engine vehicles, which would hit German producers hardest.

German exports of vehicles with engines of 2.5 liters or larger to China reached US$1.2 billion (HK$9.33 billion) last year.

France was seen as the target of Beijing's brandy probe due to its support of tariffs on China-made EVs. French brandy shipments to China reached US$1.7 billion last year and accounted for 99 percent of the country's imports of the spirit.

Reuters