[Text/Observer Network Liu Chenghui] Last year, the European Union imposed tariffs on Chinese electric vehicles, triggering a trade dispute. China implemented provisional anti-dumping measures on EU brandy, which once left the French Cognac industry "scarred." However, with recent high-level exchanges between China and France, they "smelled a rare ray of optimism."

Hong Kong's English-language media South China Morning Post reported on June 4 that French Cognac insiders are now optimistic about the easing of the situation. Especially after the leaders of China and France spoke over the phone, they hope that China will soon lift its provisional anti-dumping measures on EU-imported brandy.

William Grosperrin, head of the French Cognac brand Grosperrin, said he is optimistic about the prospects of the negotiations.

"We heard that the discussions between officials from both sides are progressing quite smoothly. The dialogue is positive, and the Chinese government is willing to listen to our appeals," he said.

On October 8, 2024, Hangzhou, Martell Cognac from France. Visual China.

Grosperrin said that one of his Chinese clients refused to accept an order that had already been paid for before the provisional anti-dumping measures took effect to avoid paying additional fees.

"This gentleman is waiting for the negotiation to end. In the meantime, his money is still stuck in France," Grosperrin said. "I am very willing to ship it to him now, but he doesn't want it. He keeps saying 'no, no, the negotiation will succeed, the policy will change,'" Grosperrin said.

Grosperrin also said that French Cognac does not pose a threat to Chinese brandy and that the two can develop together.

"We have cooperated a lot with brands like Changyu (China). I think Chinese brandy can also gain global recognition through Cognac... Our competitors are not each other but other alcoholic beverages like whiskey," he said.

"I think there is a misunderstanding, and this misunderstanding will be eliminated. This is normal in the business world," he said.

The Ministry of Commerce of China decided on January 2024 to initiate an anti-dumping investigation on imported related brandy originating from the EU, and announced on October 2024 to implement provisional anti-dumping measures on imported related brandy originating from the EU, imposing a deposit rate ranging from 30.6% to 39% on EU-brandy brands such as Martell, Hennessy, and Rémy Martin.

Western media generally speculated that this move by China was a retaliatory measure against the EU's insistence on taxing Chinese electric vehicles.

The Ministry of Commerce of China announced in April this year that the investigation period for this case would be extended to July 5, 2025.

According to Singapore's Lianhe Zaobao, on June 4, during the OECD meeting held in Paris, Jean-Baptiste Saint-Martin, the Ministerial Representative for Trade of the French Ministry of Europe and Foreign Affairs, said he believed that China and France could resolve their disputes over Cognac tariffs.

He said that since France produces 99% of the EU's brandy, this issue has actually become a bilateral issue between China and France.

"We must maintain dialogue, and I believe we can ultimately achieve positive results," he said, emphasizing that this issue has a profound impact on France's national image. In the current turbulent international situation, France must strengthen diplomatic relations. "By resolving disputes and frictions like Cognac, we can definitely achieve this, and I firmly believe that our Chinese counterparts understand this," he said.

South China Morning Post reported that due to China's provisional anti-dumping measures, the French Cognac industry has suffered significant losses. Data released by the National Interprofessional Bureau of the French Cognac Industry (BNIC) showed that in 2024, exports of French Cognac to China fell by 9.6% in volume and 23.8% in value compared to the previous year.

Fabrice Barusseau, a French Socialist Party MP representing the Cognac region, urged the French government on June 2 to reach an agreement with China before the July 5 deadline.

"In February 2025 alone, exports to China dropped by 72%," Barusseau said, noting that the Chinese market accounts for 25% of sales of French Cognac.

LVMH, the French luxury goods giant with the Hennessy brand, has repeatedly expressed concerns about the tariff. Stéphane Bianchi, CEO of the group, warned in a letter to French lawmakers last week that 80% of French Cognac exports go to China and the United States.

"If Europe does not take action, does not coordinate, and does not try to negotiate, this industry will disappear," he said.

At the regular press conference held by the Ministry of Commerce on the afternoon of May 29, the spokesperson responded to the situation regarding the "anti-dumping investigation on related brandy imported from the EU."

He Yongqian, spokesperson for the Ministry of Commerce, stated that the anti-dumping investigation by the Ministry of Commerce on related brandy imported from the EU will expire on July 5, 2025. Currently, the investigating authority is reviewing price commitment applications submitted proactively by exporting operators from the EU. The investigating authority will make a final decision based on the facts of the case and in accordance with legal and regulatory investigations. At the same time, we remain open to resolving economic and trade differences through dialogue and consultation.

This article is an exclusive contribution from the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7512088174462583311/

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