China and France have resumed discussions on China’s anti-dumping measures targeting European brandy imports, French spirits lobbying groups said on Nov. 12, calling the development “a positive initial response.”
Representatives from the cognac and Armagnac industries met with French President Emmanuel Macron to address the impact of China’s provisional anti-dumping measures on EU brandy exports, which have disrupted trade since October.
The Bureau National Interprofessionnel du Cognac (BNIC), a leading French cognac industry body, said the investigation “is not a legal problem but a political one,” underscoring the need for a diplomatic resolution. Industry groups are urging the French government to press for a bilateral solution through diplomatic channels.
In October, China’s Ministry of Commerce announced provisional anti-dumping measures on European brandy, requiring importers to pay deposits ranging from 30.6% to 39%. While formal anti-dumping duties have not been imposed, the deposits have stoked trade tensions.
The measures coincide with rising trade friction between China and the European Union. On Oct. 29, the European Commission announced a five-year countervailing duty on Chinese electric vehicle imports, with rates between 17% and 35.3%.
China is the second biggest export market for cognac after the US, importing US$1.7 billion worth of cognac from France last year.
Despite heightened tensions, French cognac and Armagnac industry representatives expressed cautious optimism, citing recent interactions between French and Chinese officials during the China International Import Expo in Shanghai. “The exchange has helped restore dialogue and marks a critical step toward a bilateral solution,” they said.
France was the guest country of honor at the Expo, which concluded Nov. 10. Prominent French cognac producers, including LVMH, Rémy Cointreau, and Pernod Ricard, showcased their products at the event.
China’s Ministry of Commerce spokesperson He Yuming confirmed the talks, saying Minister of Commerce Wang Wentao met with Sophie Primas, French Minister Delegate for Foreign Trade and French Nationals Abroad during the Expo. The two sides discussed Sino-French trade cooperation and EU trade remedy cases, but no details of the progress were disclosed.
On Nov. 11, China issued a supplementary notice clarifying its provisional measures. Starting Nov. 15, importers can provide financial guarantees instead of cash deposits, a move welcomed by French spirits lobbying groups as “a positive step forward.”
China launched its anti-dumping investigation into EU brandy in January and ruled in August that dumping had occurred but initially refrained from imposing temporary measures. The sudden October announcement requiring deposits has since created uncertainty for importers and disrupted trade flows.
Brandy imports into China have already declined. From January to September 2024, imports dropped 21.39% year-on-year by volume and 24.43% by value. French brandy accounted for 99.24% of the total import value during that period.
The decline reflects both weak domestic consumption and high inventory levels among alcohol distributors. Additionally, fears that anti-dumping duties could be imposed during transit have caused some importers to halt purchases altogether.
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