After the bloc voted in favor of a 7.8-35.3 % tariff on Chinese electric vehicles, China has made the decision to impose a provisional anti-dumping tariff on brandy imported from the European Union.  ,
The Chinese Ministry of Commerce announced in a speech on Tuesday that it had determined, at a preliminary stage, that the EU brandy goods were being dumping on the Chinese industry, putting a serious risk to the local economy.  ,
Beginning on Friday, the new taxes will take the form of cash reserves. Between 30.6 % and 39 % are the deposit rates set.
It emphasized that the decision was made after it conducted an anti-dumping investigation against the EU’s brandy in accordance with Chinese laws and regulations as well as the World Trade Organization ( WTO ) rules.
Additionally, it stated that the EU’s anti-dumping and anti-subsidy investigations are still being conducted. After the studies, it stated that it would make an objective and honest assessment to ensure that all parties ‘ interests are thoroughly protected.  ,
European brands from Hennessy to Remy Martin are anticipated to be hit by China’s new interim tariffs.  ,
In 2023, France exported 165.3 million bottles of cognac to the US and 61.5 million bottles to China, according to the Bureau National Interprofessionnel du Cognac ( BNIC ), France’s Cognac governing body.
On Tuesday, the BNIC announced that France would work with the Union to protest China’s vodka taxes at the World Trade Organization.  ,
On August 29, the Taiwanese government had announced that it would not impose interim duties on EU cognac. Beijing suggested raising the prices of its EVs to settle the disputes at the time when Chinese and European officials were in last discussions regarding the EV tax problem.  ,
However, last week it was discovered that Beijing’s efforts to halt the Electric tariffs were unsuccessful.
Blaming France
On October 4, five EU member countries, including Germany and Hungary, voted against the taxes imposed by the German Commission on Chinese EVs, AFP reported, citing some unknown Western officials.  ,
Twelve nations, including Spain and Sweden, and ten member states, including France, Italy, and Poland, voted against the Electric tariffs.
The tariffs on Chinese EVs, according to Hildegard Mueller, president of the German Association of the Automotive Industry (VDA ), represent a backseat to international cooperation. He urged China and the Euro to maintain their discussions to stop further increase and potential business disputes.  ,
He praised the German authorities for abstaining from the Electric taxes and vehemently defended the rights of Europe and the European automotive industry.  ,
” French auto firms such as Peugeot, Citroën and Renault had glory days in the Chinese market but now they only have a less than 1 % market share in China”, a Jiangsu-based columnist using the pseudonym” Jianshiyijin” says in an article.  ,  ,
He claims that the government and French automakers want to promote the EV industry and offer 800,000 vehicles every by 2027. That implies that someone will gain market shares. That’s why China has become a scapegoat”.
He suggests that China might consider imposing additional tariffs on a wide range of European goods, including agricultural and corner goods like red wines. ” France’s luxury items such as purses, fragrance and clothings should also be targeted”.
Tried all implies
” China has previously tried all methods to avert a price war with the EU”, a Zhejiang-based contributor says in an essay. ” We do n’t need to wallow in sadness and disappointment. It’s time to discover how we can respond when the EU fired the first shot at us.
He says the 10 EU member states that voted for the Electric levies may become targeted by China’s retribution, particularly France.  ,
He claims that France had a significant role in the approval of the EV taxes suggested by the German Commission. ” As the saying goes,’ It’s better to cut off one hand of an army than to injure his ten hands.’ Our retribution if targeted France and demand that it give a high price for its actions.
He says China may acquire imposing tariffs on French items including aircraft and relevant parts, red wines, cheese and meat products, makeup, cases and bags, jewelry, clothes and watches.
He claims that China should also retaliate against the abstaining EU members because they refused to join forces and halt the EV tariffs. He urges China to give up hope that the EU will continue to be free of the influence of the US, which has already imposed a 100 % tariff on Chinese electric vehicles.
According to the United Nations Comtrade database on international trade, France’s total exports to China increased by 6 % to US$ 26.6 billion last year from US$ 25 billion in 2022.  ,
Big engines
Germany may not be able to escape Beijing’s retaliatory measures despite voting against the EV tariffs China was given.  ,  ,
On Tuesday, the Chinese Ministry of Commerce announced that it is considering imposing higher tariffs on imports of large-engined vehicles from the EU. China pledged to take all necessary steps to firmly protect the interests of China’s businesses and industries.
Engines with displacement, or size of the combustion chambers, equal to or greater than 3, 000 cubic centimeters or three liters are considered big engines.
German automakers will be hit, according to some observers, if China imposes tariffs on European vehicles with large engines.
Read: EU-China in last gasp bid to avoid EV-driven trade war
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