China schedules inquiry into brandy imports amidst escalating EU-China trade disputes concerning electric vehicle tariffs

China initiates an anti-dumping probe into European brandy imports as a response to increased EU tariffs on Chinese electric vehicles (EV).

The Ministry of Commerce in Beijing announced plans for a hearing on July 18th regarding potential market discrepanenas from European producers. The inquiry, requested by prominent distilleries Martell, Hennessy, and Rémy Martin among others, could lead to new duties being levied on EU brandy imports.

This move came shortly after the European Union implemented provisional tariffs of up to 37.6% on Chinese EVs entering the bloc following a nine-month investigation into alleged market flooding and unfair competition. These tariffs, set from Friday and lasting four months before becoming permanent, are part of escalating trade tensions.

In retaliation, China's State Council announced an anti-dumping examination focused on the EU brandy industry following a petition by the China Alcoholic Drinks Association. France, responsible for 99% of EU brandy imports into China, stands to be most affected by potential tariffs.

The Ministry reiterated its stance at a press conference, emphasizing Beijing's intent to resume discussions over the EV tariff issue with the EU. Meanwhile, Valdis Dombrovskis of the European Commission expressed confidence that trade-war retaliation from China would not occur in response to the EV tariffs.

China also initiated an inquiry into European pork exports and contemplated action against European dairy imports and luxury petrol cars, according to a report by the state-run Global Times. In contrast, US President Joe Biden had imposed 100% tariffs on Chinese EVs in May.

Despite these developments, some European car manufacturers have voiced concerns about long-term industry impact. Volkswagen, for example, has expressed reservations over the EU's trade actions.