China’s Commerce Minister Wang Wentao said the country’s anti-dumping investigation into European Union brandy isn’t targeting any specific member state, though France is by the biggest brandy producer and exporter to China.
Wang made the remarks during a series of meetings with leading French business leaders in Paris on April 7th and 8th, which included a roundtable discussion with leading brandy producers.
The probe, initiated at the request of domestic industries, aims to be transparent and compliant with both Chinese law and World Trade Organization rules, Wang added.
According to a report by state-owned Xinhua News Agency on April 9th in Paris, during his meeting with representatives from French brandy companies and industry associations, Minister Wang emphasized that the anti-dumping investigation into EU brandy was initiated at the behest of domestic industries and is not directed at any specific EU member state.
The investigation will proceed without presuming any outcomes and will be carried out transparently and in accordance with Chinese laws and WTO regulations, ensuring the rights of all involved parties are thoroughly protected.
Participants at the meeting included executives from three major industry associations: the Bureau National Interprofessionnel du Cognac (BNIC), Bureau National Interprofessionnel de l’Armagnac,and the Fédération des exportateurs de vins et spiritueux de France, along with leaders from five key wine and spirits companies, including Pernod Ricard, LVMH, and Rémy Cointreau. The participants expressed their gratitude for the organization of the meeting, which allowed for direct communication and voiced their willingness to actively engage with the Chinese investigation process and continue their commitment to the Chinese market.
On January 4, 2024, the Chinese Ministry of Commerce announced the commencement of an anti-dumping investigation into brandy imports from the EU, following a request from the China Alcoholic Drinks Association (CADA). The investigation was prompted by concerns over EU brandy’s increasing market share in China, which is perceived to be encroaching on the market share of domestic brandy. The association preliminarily estimated the dumping margin at 15.88%.
According to the Ministry’s announcement, the investigation began on January 5, 2024, and is scheduled to conclude by January 5, 2025, with the possibility of a six-month extension under special circumstances.
This investigation is closely watched by French brandy producers, given France’s status as China’s largest supplier of imported brandy. In 2023, according to data released by China Customs, China imported 43.3 million liters of brandy last year worth US$1.75 billion. France alone accounted for 96.16% of the total volume and 99.27% of the total value of brandy imports into China.
In 2023, according to data released by China Customs, China imported 43.3 million liters of brandy last year worth US$1.75 billion. France alone accounted for 96.16% of the total volume and 99.27% of the total value of brandy imports into China.
The selected companies for the sampling in the investigation include MARTELL & CO, Société Jas Hennessy & Co, and Rémy Martin —whose brands Martell, Hennessy, and Rémy Martin dominate the Chinese market and are popularly known as the “big three imported spirits” within China.
There are speculations that the probe into EU brandy by the Chinese Ministry of Commerce might be a countermeasure in response to the European Commission’s subsidy investigation into Chinese electric vehicles last October.
Vino Joy will keep a close eye on further developments regarding this anti-dumping investigation.
