Trade Dispute Escalates: China Imposes Anti-Dumping Measures on European Brandy

Trade relations between China and the European Union have reached a new low. The Chinese Ministry of Commerce recently implemented anti-dumping measures against brandies imported from the EU, including well-known brands such as Hennessy and Remy Martin. These measures are considered legitimate trade remedies after the European Union imposed tariffs on electric vehicles manufactured in China, triggering the largest trade conflict with Beijing in a decade. Following preliminary investigations, the Chinese Ministry of Commerce determined that brandy imports from the EU pose a serious threat to the domestic industry. These findings follow the allegation that the EU's measures against Chinese electric vehicles lacked any factual and legal basis and clearly violated World Trade Organization (WTO) rules. China has formally lodged a protest with the WTO in this regard. Tensions further escalated after the European Commission decided to proceed with tariffs on Chinese electric vehicles despite resistance from Germany, the largest economy in the bloc. Another indication of the heightened trade conflicts are the announcements by the Chinese Ministry that an anti-dumping and anti-subsidy investigation into EU pork products would deliver objective and fair decisions. Additionally, China is considering increasing tariffs on large motor vehicles, which would hit German exporters the hardest. Last year, the export of such vehicles with engines of 2.5 liters or more from Germany to China amounted to an impressive $1.2 billion.