China extends anti-dumping investigation on EU brandy for three months (#1688584)

China's Ministry of Commerce said on Wednesday it would extend its anti-dumping investigation into brandy originating in the European Union by three months, less than the full extension allowed under its previous guidance.

The investigation, which began on January 5 and should be completed within a year, will be extended until April 5 due to the “complexity” of the investigation, the ministry said in a brief statement, without providing further details.

The ministry previously said the investigation could be extended by six months in special circumstances.

Preliminary results of the investigation have shown that EU brandy dumping threatens to harm the Chinese sector, the ministry said in October as it imposed temporary measures on EU brandy imports, affecting French brands such as Hennessy and Remy Martin. .
The investigation was widely seen as the result of France's support for EU tariffs on electric vehicles made in China. French President Emmanuel Macron previously called the investigation “pure retaliation.”

The Chinese measures require Chinese importers to pay security deposits of almost 40% if they want to import brandy from the bloc, making it more expensive upfront to ship brandy from the EU.

France's Trade Ministry previously called the Chinese measures “incomprehensible” and that they had violated free trade.
Last month, the EU Commission said it had formally submitted Chinese provisional anti-dumping measures to the World Trade Organization.

Shipments of French brandy to China reached $1.7 billion last year and accounted for 99% of the country's imports of the spirit.