China Retaliates Against EU with Anti-Dumping Probe into Brandy Exporters

Investigation targets French brandy makers in response to EU's probe into cheap Chinese electric cars, causing shares of luxury goods groups to tumble.

• China has launched an anti-dumping investigation into European Union brandy exporters, a move seen as retaliation for the EU's probe into cheap Chinese electric cars.
• The Chinese Ministry of Commerce initiated the probe at the request of local liquor producers, following a preliminary inquiry that found EU products dominated China's multi-billion dollar market.
• The investigation is likely to target French brandy makers, including major exporters like Remy Martin and Hennessy, as France played a central role in persuading the European Commission to launch the investigation into Chinese electric vehicle makers.
• Shares of luxury consumer goods groups, including Pernod Ricard and Rémy Cointreau, fell following the announcement of the probe.
• This move by China echoes a similar situation in 2020 when China imposed duties on Australian wine imports amid deteriorating relations between the two countries.

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