China Decides Not to Impose Temporary Tariffs on EU Alcohol Imports

The Chinese Ministry of Commerce has decided not to impose temporary tariffs on the import of EU-origin brandy. The European Commission plans to impose import tariffs on electric vehicles originating from China.

China alleges dumping in the import of EU-origin brandy and has launched a counter-investigation. European alcohol producers' share prices have gained value after China's tax decision.

The European Commission will take necessary steps to defend EU exporters and emphasizes that the export of cognac and brandy from the EU is in line with WTO rules. China has also launched investigations into EU imports of pork and dairy products.

The decision not to impose provisional duties may temporarily reduce tensions in the EU-China trade war. However, tariffs on brandy imports from the EU are likely in the future.

EU spirits exports to China, particularly brandy, are under threat. The EU is concerned about Chinese laws that apply security approvals to exports of 'important data'.

The Chinese investigation into brandy dumping is seen as a retaliatory move against the EU's anti-subsidy investigation into Chinese-made electric vehicles.