BEIJING (FFN) – China has decided not to impose import tariffs on cognac from the European Union (EU) for the time being, despite an investigation showing harm to domestic liquor producers. This decision was announced on Thursday by China’s Ministry of Commerce, creating room for resolving ongoing trade disputes, according to Reuters.
“We have decided not to impose temporary anti-dumping tariffs at this time,” the ministry stated, referring to imports of spirits from the EU. This statement suggests that Beijing is still keeping the option open to impose tariffs on cognac imports at a later stage.
Relations between the EU and China have significantly deteriorated in recent months, primarily due to Brussels’ decision to impose additional import tariffs of up to 36.3% on Chinese electric vehicles. In response, Beijing has threatened retaliatory measures and has already started investigating imports of cognac, pork, and more recently, dairy products. Analysts believe that China’s latest decision to hold off on imposing tariffs on cognac could be a strategic move to facilitate negotiations, urging the EU to reconsider its planned tariffs on Chinese electric vehicles.
Should tariffs on cognac be imposed, France would be the hardest hit, as it accounted for 99% of China’s cognac imports last year. Analysts point out that Beijing’s focus on this product is a logical step, given that France has been one of the strongest advocates for imposing tariffs on Chinese-made electric vehicles.
Key Words: China, EU, cognac, import tariffs, trade disputes, France, electric vehicles, Ministry of Commerce
