China extends investigation into wine spirits imported from the European Union

The provisional measures should be extended. The Chinese Ministry of Commerce declared on Wednesday December 25 that it would extend by three months its anti-dumping investigation into wine spirits (such as cognac) from the European Union (EU). The investigation, launched on January 5, 2024 and which was to last one year, will be extended until April 5 due to its “complexity”, the ministry said in a brief press release, without giving further details.

The ministry specified in October that the anti-dumping investigation was to end no later than January 5, 2025, but that it could be extended by six months “in special circumstances”. Beijing then imposed provisional measures on imports of certain spirits from the EU, widely seen as retaliation for the Twenty-Seven’s proposed customs duties on Chinese electric vehicles.

Nearly 40% at Chinese customs on wine spirits

Under the measures, Chinese importers must provide what Beijing describes as security deposits to Chinese customs of almost 40% if they want to import European wine spirits. In November, the European Commission referred the matter to the World Trade Organization (WTO) to challenge the measures imposed by China.

Exports of French cognac to China represented 99% of imports of this spirit into the country in 2023 for an amount of 1.7 billion dollars (1.6 billion euros).

With Reuters – written by Ryan Woo; French version Kate Entreringer)