China targets EU brandy in tit-for-tat anti-dumping probe

SHANGHAI/PARIS — China has opened an anti-dumping investigation on brandy imported from the European Union (EU), a step that appears to be mainly targeted at France and adds to ongoing trade disputes between Beijing and Brussels.

The investigation announced by China’s commerce ministry on Friday will focus on brandy in containers of less than 200 liters (44 British gallons) from the EU. The news knocked shares in French spirits companies Remy Cointreau and Pernod Ricard lower.

It was prompted by a complaint submitted by the China Alcoholic Beverages Association on behalf of the domestic brandy industry, the ministry said.

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.

Trade disputes between China and Europe have been mounting over the past year, with both sides exchanging accusations of unfair competition and protectionism. Most recently, the EU said in December it would begin an anti-dumping investigation into biodiesel imports from China.

France’s cognac industry association said it would fully cooperate with Chinese authorities, but it believes the probe is linked to a broader trade row rather than the liquor market. “We are confident that our products and commercial practices fully comply with Chinese and international regulations,” the Bureau National Interprofessionnel du Cognac (BNIC) said in a statement to Reuters.

Remy Cointreau declined comment. Pernod Ricard and LVMH did not immediately respond to requests for comment.

The European Commission said it was assessing the documentation it had received, and will intervene in the framework of the investigation, as appropriate, in close cooperation with the EU industry concerned. —