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China’s commerce ministry announced on Friday that it has begun an anti-dumping investigation into brandy imported from the European Union, a move seen as retaliation for the bloc’s probe into imports of Chinese electric vehicles.
The investigation will focus on brandy in containers of less than 200 litres (44 British gallons) from the EU and it follows a complaint submitted by the China Alcoholic Beverages Association on behalf of the domestic brandy industry, the ministry said.
The European Commission was “assessing documentation” received from Chinese authorities, and would assist in the investigation “in close cooperation” with EU liquor companies, the Commission said in a statement.
China imported $1.57 billion worth of spirits from distilled grape wine in 2023 through November and France accounts for 99.8% of all EU brandy exports, according to Chinese customs data.
Some analysts said that the move is believed to be in retaliation for France’s strong support for the EU probe into suspected anti-competitive trade practices by China.
In September, the European Commission said it had launched an investigation into Beijing’s possible use of “huge state subsidies” to keep prices for its electric vehicle exports “artificially low.”
Brussels has clamped down on cheap Chinese imports in recent months. In November, the European Commission imposed temporary tariffs of up to 24% on certain plastic products imported from China following an anti-dumping investigation.
Then, in December, the EU opened another anti-dumping investigation into Chinese biofuel imports, which local producers have claimed are “seriously harming” their industry.