China’s top diplomat Wang Yi’s high-profile tour of Europe this week has been dominated by deepening trade tensions and mounting security concerns, with relations between Beijing and the European Union their most strained in years. Meanwhile, Brussels is attempting to maintain good relations with Washington, in the face of President Donald Trump’s unpredictable policies.
While Wang is touring Europe and meeting with top decision makers, China’s commerce ministry moved to massively increase some tariffs on EU products.
The Chinese ministry, which announced the measure on Friday, said its investigations had found that EU brandy was being dumped on the Chinese market, threatening domestic producers. The country’s anti-dumping duties of up to 34.9 percent on European brandy imports will take effect on 5 July.
To circumvent these newly imposed tariffs, a number of predominantly French producers – including leading Cognac houses Pernod Ricard, Rémy Cointreau and Hennessy – have consented to sell their products in China at prices no lower than a predetermined minimum.
Starting from 5 July, these firms will be permitted to operate under this pricing scheme as an alternative to paying the duties.
French cognac hit hard by Chinese anti-dumping measures
In Berlin, German Foreign Minister Johann Wadephul criticised China’s “unilateral and often not very transparent” export restrictions on rare earths, which are vital for industries including electric vehicles and electronics.
Read also:
How Trump’s steep tariffs on China are pushing the EU closer to Beijing
How the EU’s reliance on China has exposed carmakers to trade shocks
Macron calls US tariff pause ‘fragile’ and urges EU to stay strong