【By Observer News, Xiong Chaoran】On July 4, the Chinese Ministry of Commerce finally ruled that brandy from the European Union was being dumped and would be subject to anti-dumping duties starting on July 5. Notably, 34 EU companies met the requirements and thus would not be subject to the anti-dumping tax.

Hong Kong's South China Morning Post reported on July 7 that, according to a previous agreement, major producers such as Hennessy, Martell, and Rémy Martin signed a commitment to a minimum export price, thereby obtaining an exemption. Many analysts in Paris were surprised by China's decision to grant tariff exemptions to some French Cognac producers, as they had initially predicted that China's decision to impose tariffs could further escalate tensions with the EU.

On July 4 local time, French Foreign Minister Jean-Noël Barrot described the Chinese announcement of tariff exemptions as a "deal" reached with the Cognac industry. "The agreement announced today is an important step in ending the investigation. For Cognac and Armagnac (both types of brandy), the entire industry has been saved," he added. He also stated that discussions between France and China since the beginning of this year have created a "favorable atmosphere" for both sides to find a "constructive solution" to the differences. Meanwhile, French President Macron considered China's decision a "positive step."

Martell Cognac from France, Visual China

According to reports, after China published the list of 34 EU companies, French industry insiders said the move could have a significant impact. The Union of Cognac Grape Growers in France (UGVC), which has 2,000 members, stated that these tariff exemptions would cover about 90% of the quantity of Cognac exported from France to China.

On July 4 local time, Macron expressed on social media platform X that "this is a positive step forward in resolving the dispute that threatens our exports." He stated that the agreement would apply to most Cognac and Armagnac producers in France.

On the same day, President Macron met with Wang Yi, member of the Political Bureau of the Central Committee of the Communist Party of China and Foreign Minister, at the Elysee Palace in Paris.

According to the website of the Ministry of Foreign Affairs, Macron stated during the meeting with Wang Yi that, on the occasion of the 50th anniversary of the establishment of diplomatic relations between China and the EU, both should make strategic choices to become predictable, trustworthy friends and partners. France highly values the development of Sino-French relations, welcomes increased investment from China in France, and looks forward to a more balanced trade relationship. He expected to visit China again at an appropriate time.

Wang Yi stated that China and the EU resolved the brandy issue through friendly consultations, and hoped that France, as a core country in the EU, would promote the EU to properly handle the trade disputes between China and the EU and respond positively to Chinese concerns.

The South China Morning Post pointed out that there are still some unresolved issues between China and France regarding Cognac. For example, Barrot mentioned that not all French producers enjoy tariff exemptions from China, and China still restricts the sale of French Cognac in duty-free stores.

The French Association of Cognac Producers (BNIC), representing French Cognac producers, stated that the organization will continue to push the French government and the European Commission to reach a political agreement with China to cancel the anti-dumping duties on Cognac.

Public data shows that the EU is the world's largest region for brandy production, and almost all (99.8%, according to Chinese customs data) of its brandy exports to China come from the French region. Brands like Pernod Ricard and Rémy Martin have achieved very considerable profits in the Asian market.

According to a report by the French newspaper Le Figaro in March, French Cognac exports to China fell by 60% over the past four months. On June 2, Fabrice Barousse, a French Socialist Party MP representing the Cognac region, urged the French government to reach an agreement with China before the July 5 deadline. He said, "In February alone in 2025, exports to China fell by 72%," and the Chinese market accounts for 25% of French Cognac sales.

The South China Morning Post also mentioned that in October last year, the European Commission, despite China's opposition, ended the "anti-subsidy investigation" on grounds that were completely untenable, and insisted on imposing a five-year "final anti-subsidy duty" on Chinese electric vehicles. At that time, China announced temporary anti-dumping measures on imported brandy from the EU.

For several months, China and the EU have been discussing a series of trade disputes. On July 4, according to @Yuyuantan Tian, currently, the technical part of the negotiations on electric vehicles between China and the EU has basically been completed, only missing the final step, the key being whether the EU can demonstrate the necessary political will to resolve the issue.

On July 4, the spokesperson for the Chinese Ministry of Commerce stated that, following an application from the domestic industry, the Ministry of Commerce issued a notice on January 5, 2024, deciding to launch an anti-dumping investigation on related brandy imported from the EU. The Ministry strictly conducted the investigation in accordance with laws and regulations, fully protected the rights of interested parties, widely listened to opinions from all sides, and ultimately made a conclusive determination based on facts and evidence, ruling that dumping exists, with a dumping margin of 27.7%-34.9%. The final determination was published on July 4, 2025, and the final anti-dumping measures will take effect from July 5, with an implementation period of 5 years.

At the same time, after reviewing the application, the investigation authority found that the applications of 34 enterprises met the legal requirements and decided to accept them. The products of these enterprises, when exported to China, will not be subject to anti-dumping duties if they meet the commitment conditions.

The spokesperson emphasized that China has always advocated the cautious use of trade remedy measures. In this case, the investigation authority conducted a detailed review of the relevant price commitment applications and fully considered the actual situation of the domestic industry, believing that the final determination using the price commitment method conforms to China's relevant laws and regulations, and is beneficial for maintaining a fair competitive market order. The domestic industry in China supports the final determination and the price commitment method. The EU industry also welcomed the application of price commitments. In addition, the acceptance of price commitments in this case once again demonstrates China's willingness to resolve trade frictions through dialogue and consultation.

This article is an exclusive article by Observer News, and it is not allowed to be reprinted without permission.

Original: https://www.toutiao.com/article/7524252141968556559/

Statement: This article represents the views of the author. Please express your opinion by clicking the [top/down] button below.