On Friday, the Chinese Ministry of Commerce announced the conclusion of its year-long anti-dumping investigation into brandy imports from the European Union, resulting in a significant ruling that introduces tariffs ranging from 27.7% to 34.9% for companies that have not committed to a price agreement with Chinese authorities.
The investigation, launched in January 2024, was aimed at evaluating claims of unfair competition and alleged dumping practices by European brandy producers. According to the final report, the ministry concluded that EU brandy imports were harming the domestic industry and warranted protectionist measures to re-establish fair competition.
However, the new tariffs will not apply to 34 European companies that submitted and formalized price commitment agreements, ensuring continued market access without the added tax burden. This list includes leading names in the brandy sector such as Martell, Hennessy, and Remy Martin, all of which have long-standing commercial relationships with China.
The resolution deals a particular blow to French producers, as China represents their second-largest export market after the United States, with Cognac and Armagnac being especially vulnerable. The tariffs come at a delicate time, as China–EU trade tensions have intensified, especially following the European Union’s recent move to impose tariffs on Chinese electric vehicles, citing state subsidies and unfair competition as justification.
The announcement also coincides with Chinese Foreign Minister Wang Yi’s diplomatic visit to Brussels, where he participated in the 13th EU-China Strategic Dialogue. This timing has prompted speculation that the brandy tariffs are part of a wider retaliatory strategy from Beijing, targeting symbolic and economically important European exports in response to EU protectionist actions.
China’s Ministry of Commerce clarified that the tariffs are effective immediately, and only non-compliant companies—those who failed to meet the deadline or negotiate acceptable terms—will be affected. The dumping margin, calculated during the investigation, provides the legal basis for the tiered tariff range.
For the European brandy sector, this development forces a strategic reckoning. Firms that have negotiated exemptions will continue exporting under the conditions of their agreements, while others face a sharp increase in the cost of access to one of their key international markets. Beyond commercial implications, the move could also widen the rift in broader EU–China economic relations.
As the EU and China navigate a tense trade environment, this case highlights how beverage exports, particularly luxury categories like brandy, are now entangled in global geopolitical and economic dynamics. Moving forward, the emphasis will be on compliance, strategic diplomacy, and possibly supply chain reorientation for companies seeking long-term stability in Asia’s largest market.
Source: Vinetur