STORY: China spared some of Europe’s major cognac makers from new duties of up to 35% on EU brandy Friday.
The companies included Pernod Ricard, LVMH and Remy Cointreau.
The move eased tensions with Brussels, as Beijing tries to resolve a separate row over tariffs on Chinese-made electric vehicles.
China’s Commerce Ministry said in a final ruling it will levy duties of up to 34.9% for a period of five years from July 5 on brandy originating in the EU.
Beijing said most of France’s cognac industry will be exempt from the duties if they sell at a minimum price.
It didn’t disclose what that price was.
Beijing launched its anti-dumping probe on EU brandy in January last year.
It was widely seen as retaliation for the EU’s decision to impose major import tariffs on China-made EVs.
EU spokesperson Olof Gill still criticized the tariffs.
“We believe that China’s measures are unfair. We believe they are unjustified. We believe they are inconsistent with the applicable international rules and are thus unfounded.”
China’s foreign minister Wang Yi is visiting Europe this week.
He is looking to lay the groundwork for a summit between EU and Chinese leaders later this month.
The EV dispute and China’s curbs on the export of rare earths are due to be on the agenda.
Shares of French spirits makers were mixed as investors took in the ruling on Friday.
Many believed Beijing had agreed to drop tariffs in return for price commitments.
Pernod Ricard, Remy Cointreau, China, Beijing, Commerce Ministry
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