China Retaliates Against Europe's EV Probe with Investigation into French Brandy Makers

France's cognac industry denies allegations of price dumping, stating discounts given to Chinese buyers are standard and compliant with regulations.

China has launched a tit-for-tat trade probe into European luxury spirits producers, specifically targeting French brandy makers, in response to Europe's investigation into low-cost Chinese electric vehicle makers.
China's investigation is seen as retaliation against the European Union's probe into Chinese EV manufacturers like BYD, which recently overtook Tesla in sales.
France's cognac industry has responded to the allegations of price dumping, stating that the discounts given to Chinese buyers are not unusual and are fully compliant with Chinese and international regulations.
China's probe into European brandy is seen as a strategic move as it is difficult for China to target Europe's car industry due to the majority of cars being built in China in joint ventures with local partners.
The trade dispute between Europe and China has escalated over the past year, with both sides accusing each other of unfair competition and protectionism.