Hangover for French cognac, taxed up to 34.9% by China
As China and the European Union (EU) are scheduled to hold a summit at the end of July, Beijing has decided to impose tariffs on French cognac of up to 34.9%. While producers will be able to negotiate a minimum price for access to the Chinese market to avoid this, the cognac industry is collateral damage in the ever-increasing trade tensions between the two powers.
Bad news for the cognac industry: “China has decided to impose anti-dumping customs duties on European wine spirits, mainly produced in France, for the next five years,” announces the Hong Kong daily South China Morning Post (SCMP) .
"The margin of customs duties determined in the final decision varies between 27.7% and 34.9% , " specifies the economic newspaper Diyi Caijing , which cites the data revealed Friday, July 4, by the Chinese Ministry of Commerce. The Ministry brought forward its decision by one day: initially, it was due to confirm or reject the increase of up to 35% of customs duties on all bottles entering China on July 5.
From Beijing's perspective, the facts are simple: Chinese authorities launched a so-called "anti-dumping" investigation in August 2024, accusing European spirits producers – primarily French cognac – of dumping, meaning slashing prices and unfair competition.
Nearly a year later, the survey data are a priori without appeal, asserts Diyi Caijing :
“There is indeed dumping of spirits imported from the European Union; the equivalent spirits industry in China is threatened with substantial injury.
Courrier International
