BEIJING, China (AP) – Chinese drinkers will pay more for RemyMartin and other European brandies. The government announced Tuesday that it would impose provisional tariffs ranging from 30.6% to 39.9% on these liquors. This comes four days after a majority in the European Union approved duties on electric cars made in China.
The tit for tat move could give Chinese negotiators more leverage in negotiations with the EU to reduce or eliminate tariffs up to 35,3% on Chinese EVs that would take effect by the end of the month.
Importers must deposit the amount of the brandy tariff with the Chinese Customs Agency starting Friday.
The announcement came after a preliminary finding made by the China’s Commerce Ministry late in August that European brandy is being dumped into China, threatening to “substantial damages” for domestic producers.
China has launched a series anti-dumping investigations against European brandy, dairy and pork products. This comes as an EU investigation into Chinese EVs that has been ongoing for over a year has reached various stages.
The first brandy investigation targeted French producers of cognac, Armagnac and similar spirits. France has supported the investigation of Chinese-made EVs while Germany has opposed it, as its automakers fear retaliation on the Chinese market.
A spokesperson for the Commerce Ministry confirmed in an online report by state broadcaster CCTV on Tuesday that China is considering raising tariffs on cars imported with large engines.
Brandy tariffs vary according to brand, just like the EU duties on electric vehicles made in China. Martell products, for example, are subject to a 30,6% tariff. Remy Martin is charged 38.1% and Hennessey 39%. The tariffs are being applied to dozens of companies including some Spanish producers.
During Xi Jinping’s May state visit to France, French President Emmanuel Macron gave two bottles of cognac to Chinese leader Xi Jinping as a gift.
Moritsugu reports on political, economic, and social issues in Beijing. He has also reported in New Delhi, Bangkok, and Tokyo. He is the former AP news director for Greater China as well as Japan and Koreas.