China’s Ministry of Commerce announced on Wednesday an extension of its anti-dumping investigation into brandy imports originating from the European Union (EU). The probe, which began on January 5 this year, will now continue until April 5, 2025, citing the complexity of the case.
The investigation was initially launched at the request of the China Alcoholic Drinks Association, representing the domestic industry. It focuses on spirits obtained by distilling grape wine in containers holding less than 200 liters, imported between October 1, 2022, and September 30, 2023.
According to a preliminary assessment released on August 29, the ministry found evidence suggesting that imported EU brandy involves dumping—a practice where products are sold overseas at prices lower than in the domestic market. The ministry indicated that this practice poses a substantial threat to the Chinese brandy industry, establishing a causal relationship between the dumping activities and the potential damage.
As a result, since October 11, China has imposed provisional anti-dumping measures on EU-originating brandy. Importers are now required to deposit duties with Chinese customs ranging from 30.6 percent to 39 percent based on the determined dumping margins.
The extended investigation will also assess any damage inflicted on the Chinese brandy sector from January 1, 2019, to September 30, 2023. The Ministry of Commerce stated that the extension aligns with relevant regulations and is necessary to thoroughly examine the complexities of the case.
This development highlights ongoing trade tensions and reflects the Chinese government’s commitment to protecting its domestic industries. Stakeholders in both the Chinese and European alcoholic beverage markets will be closely monitoring the situation as the investigation progresses.
Reference(s):
cgtn.com
