China's Extended EU Brandy Probe: A Strategic Move Amid Trade Tensions

China extends its anti-dumping investigation on EU brandy by three months, delaying potential penalties. This move aligns with recent trade tensions involving the U.S., EU, and China. French cognac suppliers, affected by temporary tariffs, now have more time for negotiations before any definitive rulings are made.

In a key development amidst international trade tensions, China's commerce ministry announced a three-month extension to its anti-dumping investigation into European Union brandy imports. This decision offers a lifeline to EU, primarily French, cognac suppliers by allowing additional negotiation time before potentially severe penalties are enforced.

The investigation, which commenced in January 2024, was poised to conclude within a year but will now extend to July 5, following French Foreign Minister Jean-Noel Barrot's diplomatic engagement in Beijing. China and the EU navigate this complex case while facing external pressure from threats of U.S. trade tariffs under President Trump's administration, indicating a strategic realignment of alliances.

The French cognac industry has welcomed China's decision, viewing it as an opportunity to expedite negotiations over the next three months. With China being a significant market, any impending penalties could severely impact French exports, already experiencing considerable strain from last year's temporary tariffs.

(With inputs from agencies.)