China’s Ministry of Commerce has announced an extension of its anti-dumping investigation into brandy imports originating from the European Union (EU). The investigation, which began earlier this year, will now continue until April 5, 2025, due to the complexity of the case.
The ministry initiated the probe on January 5 following a request from the China Alcoholic Drinks Association, representing the domestic industry. The investigation focuses on spirits obtained by distilling grape wine, imported in containers holding less than 200 liters during the period from October 1, 2022, to September 30, 2023.
In initial findings released on August 29, the Ministry of Commerce indicated that imported brandy from the EU is being dumped into the Chinese market, posing a substantial threat of damage to the domestic brandy industry. The ministry established a causal link between the dumping activities and the potential harm to local producers.
As a result, since October 11, China has imposed provisional anti-dumping measures on EU-originating brandy. Importers are now required to place deposits with Chinese customs authorities based on dumping margins ranging from 30.6% to 39%.
The extended investigation will also assess any damage experienced by the Chinese brandy industry from January 1, 2019, to September 30, 2023. The decision to prolong the probe underscores China’s commitment to protecting its domestic industries against unfair trade practices.
The anti-dumping measures are expected to impact trade relations between China and the EU, as brandy exporters from the EU face increased scrutiny and financial obligations when entering the Chinese market.
Reference(s):
cgtn.com
