China targets EU brandy in tit-for-tat after EV tariff vote
STORY: Trade tensions between China and the European Union ramped up again on Tuesday (October 8).
Beijing imposed temporary anti-dumping measures on brandy imports from the bloc.
The move hits top spirits brands like Hennessy and Remy Martin.
It comes after the EU voted last week for tariffs on Chinese-made electric vehicles.
That set tariff rates ranging from almost 8% for Tesla to just over 35% for Chinese auto giant SAIC.
Brussels has said it is willing to continue negotiating an alternative, even after tariffs are imposed.
But China has this week decreed that the dumping of brandy from the EU threatens China's own sector with 'substantial damage'.
Beijing hinted at more to come, and said its anti-dumping and anti-subsidy investigation into EU pork products was ongoing.
The ministry added that it was also considering a hike in tariffs on imports of large-engine vehicles.
Such levies would hit Germany's producers the hardest.
Its exports to China of vehicles with engines of 2.5 liters or larger totalled $1.2 billion last year.
Beijing said that as of October 11, importers of brandy originating in the EU will have to put down security deposits mostly ranging up to 39%.
France was seen as the target of Beijing's brandy probe due to its support of tariffs on China-made EVs.
It accounted for 99% of China's brandy imports last year, with shipments reaching $1.7 billion.
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