China's Trade Measures: A Brewing Storm with the EU

China's commerce ministry defends its anti-dumping measures on imported EU brandies as legitimate. This comes amid rising trade tensions, following the EU's tariffs on Chinese electric vehicles. Key EU brands affected include Hennessy and Remy Martin. The dispute may also impact German vehicle exports to China.

In a significant escalation of trade tensions, China's commerce ministry has justified its recent anti-dumping measures against brandies imported from the European Union, calling them 'legitimate trade remedy measures'. The statement follows an EU decision to impose tariffs on Chinese-made electric vehicles, a move that has sparked the largest trade dispute in a decade between Beijing and Brussels.

Iconic French brands like Hennessy and Remy Martin are among those caught in the crossfire of these new restrictions. China's actions are a direct response to the perceived threat that EU brandy dumping poses to its domestic industry, according to preliminary investigatory findings.

The commerce ministry also criticized the EU's measures against Chinese electric vehicles, labeling them as lacking a factual basis and violating World Trade Organization regulations. Adding to these tensions is China's consideration of increasing tariffs on large-engine vehicle imports, a decision that could heavily impact Germany, whose exports to China in this sector were valued at $1.2 billion last year.

(With inputs from agencies.)