China Escalates Brandy Dispute Amid EU Electric Vehicle Tariff Clash

China has heightened its anti-dumping investigation into European brandy imports, coinciding with the EU's provisional tariffs on Chinese electric vehicles. As both sides prepare for critical talks, major European brandy producers will attend a hearing to defend against allegations of selling at below-market rates. This conflict underscores escalating trade tensions.

China has intensified its anti-dumping probe into European brandy imports, adding fuel to an already fiery trade dispute with the European Union over electric vehicle (EV) tariffs set to take effect. The announcement coincides with the EU's provisional imposition of tariffs on Chinese-made EVs, further escalating the geopolitical stakes.

On Friday, China's Ministry of Commerce revealed plans to hold a hearing on July 18 to scrutinize claims that European brandy producers are undercutting market prices. Major brands such as Martell, Remy Martin, and Hennessy will have their first opportunity to respond to these allegations in person at the Beijing meeting, sources confirmed.

The ministry emphasized that the inquiry was prompted by requests from leading cognac houses and other industry stakeholders. Despite expressing a willingness to negotiate, China has urged the EU to reconsider its EV tariffs and remains firm on protecting its domestic industries. This standoff arrives amidst a tense four-month provisional tariff period, with high-stakes discussions anticipated on both sides.

(Disclaimer: With inputs from agencies.)