On December 25, 2024, the Chinese Ministry of Commerce announced an extension of three months to the anti-dumping investigation on cognac from the European Union. This department had previously stated that investigations could be extended for up to six months in special circumstances.
The investigation was initiated by China on January 5 and was initially scheduled to be completed within a year. The Ministry of Commerce of China released a brief announcement on Wednesday this week, stating that due to the “complexity of the case,” the investigation period has been extended until April 5, without providing further details.
In October of this year, the Chinese Ministry of Commerce stated that preliminary investigation results indicated that the dumping of cognac produced in the EU posed a threat to related industries in China. As a result, temporary measures were implemented on imports of EU-produced cognac, affecting French brands such as Hennessy and Remy Martin.
This move is widely seen as China’s retaliatory measure against France for supporting the EU’s imposition of anti-dumping tariffs on Chinese imports of electric vehicles. French President Macron has described this investigation as “pure retaliation.”
China’s temporary measures require importers to pay a deposit of nearly 40% when importing cognac from the EU, significantly increasing the upfront costs of transporting cognac from the EU.
The French Ministry of Trade has expressed that China’s measures are “unfathomable” and believes that these measures violate principles of free trade.
Last month, the European Commission officially submitted China’s temporary anti-dumping measures to the World Trade Organization.
In the previous year, French cognac exports to China reached $1.7 billion, accounting for 99% of China’s total cognac imports.
(This article is based on reports from Reuters)