usatoday24
China has imposed tariffs of up to 34.9% for five years to Brandy from the European Union, exempting the punishment of the main producers of French Coñac (Hennesy, Rémy Martin and Pernod Ricard, among others), under condition that they sell at a minimum agreed price. The measure It emerges a year after Antidumping research which China launched in early 2024.
What happened. The Chinese Ministry of Commerce reported on Saturday of “anti -dumping” tariffs between 27.7% and 34.9% to Brandy imports from the EU. The new rates apply to all distributors, except for those companies with which minimum prices will be agreed. As long as the products of these companies are exported to China, fulfilling the agreed conditions, they will not be subject to anti -dumping rights.
Why it is important. With this movement, China has ensured the commitment of 34 Brandy producers of the European Union. The country led by Xi Jinping is using French alcohol as a geopolitical control strategy, a pressure game in which it shows its ability to retaliate against European tariff policy.
The context. New tariff rates to Brandy are no accident. China initiated its anti -dumping research at the beginning of 2024, three months after the European Union began a procedure on The influx of Chinese electric cars in Europe. It was investigated how the policy of “huge state subsidies” was translating into “artificially low prices.”
Shaun Reingeneral director of the China Market Research Group based in Shanghai to Reuters, explained on those dates how the measures of the Asian country “are a shot to let Europe know that China can also plan hard measures against its growing protectionism.”
The largest market in the world for brandy. China has occupied a historic role in European brandy imports. Before the growing tensions, the country was the second largest destination for world exports of French Coñac, only behind the United States. It is a market for which they earn by market value, not by volume, if not paying more for bottle.
Why attack Brandy? Because France is, however much, The largest exporter of alcoholic beverage to China. Putting the focus on your product is the best way to attack Europe.
China and European alcohol. Chinese predilection for European alcohol does not have brandy as the only pillar. Chinese investors have been with predilection for wines like Frenchhaving come to buy entire warehouses that years later they went on sale.
Chinese groups found in European alcohol a diversification for their portfolio of assets in addition to that, as a country, China is one of the main wine consumers in the world. Despite this, this consumption has suffered an accelerated fall for about a decade.
The truce. The tariff to alcohol arrives in full uncertainty about what will end up happening with the rates imposed by Europe in the Chinese car. Europe is opening the door to the elimination of themwith the aim of looking for a land price depending on the type of vehicle.
The EU wants to prevent China from playing with a practically inevitable competitive advantage. With tariff or without it, The Chinese car is eating the European in front of our eyesand the destiny of the industry passes through Asia.
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