China strikes back against EU tariffs with explosive investigation!

Tensions between China and the European Union are escalating with recent trade measures. While Brussels is targeting Chinese electric vehicles with new tariffs, Beijing is responding by investigating a key sector of European exports.

Anti-dumping investigation against European brandy in China

Last Friday, China stepped up its anti-dumping investigation into European brandy imports, announcing a public hearing for July 18. This initiative coincides with the EU imposing provisional tariffs of up to 37.6% on Chinese electric vehicles.

The Chinese measure is intended to determine whether European producers such as Martell, Rémy Martin and Hennessy are selling their products below market price – an accusation they can contest during the hearing in Beijing. The meeting was requested by European cognac houses such as Martell and Société Jas Hennessy & Co., which are determined to defend their position.

This step comes against the backdrop of increasingly strained trade relations between Brussels and Beijing. In January, Beijing had already launched a similar investigation into brandy imports and in June another into pork deliveries from the EU.

China has made it clear that it wants to continue negotiations to avoid escalating tariffs, but is ready to take all necessary measures to protect its industries. The four-month period during which tariffs on electric vehicles remain provisional will be crucial. The two parties are expected to continue to hold intensive talks to find common ground.

Consequences and reactions of stakeholders

China’s reaction to the EU’s provisional tariffs on electric vehicles was not long in coming. Beijing immediately intensified its investigation into European brandy imports and launched a new investigation into European pork exports from France and Spain, two of the strongest supporters of the EU tariff measures.

China is also considering further investigations into dairy products and cars with combustion engines from Europe, apparently to put pressure on countries like Germany, where car manufacturers generate a third of their sales in China. This strategy is intended to divide European tariff advocates and at the same time demonstrate Beijing’s determination to protect its economic interests.

Meanwhile, the European Union has confirmed that provisional tariffs of 37.6 percent are in place on Chinese electric vehicles. Manufacturers have four months to respond to these measures. During this time, Chinese companies such as SAIC Motors, Geely and BYD are already feeling the first effects, with their share prices in Hong Kong already falling.

Analysts say this escalation could severely affect the economy and Sino-European trade relations if no solution is found. The situation is further complicated by Beijing accusing Brussels of using anti-dumping investigations to spy on Chinese supply chains, creating tensions and uncertainty in industries on both sides.

As talks between China and the EU continue, the outcome of this tariff standoff remains uncertain. The industries concerned are closely monitoring every move, aware that the decisions taken could have a significant impact on the economy, trade exchanges and global economic stability.

Daniel L.

Graduate engineer from Sciences Po Toulouse and holder of a Blockchain Consultant certification from Alyra, I join the Cointribune project in 2019. I know the potential of blockchain to transform numerous economic sectors and I gain the… commitment to raising awareness and informing the general public about this constantly evolving ecosystem. My goal is to enable everyone to understand blockchain and demonstrate the opportunities it offers. Every day, I strive to carry out an objective analysis of reality, decipher market trends, share the latest technological innovations and focus on the economic and societal benefits of this market revolution.

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