China has launched anti-dumping investigations into European Union imports of brandy and pork, escalating tensions following the EU’s imposition of provisional tariffs on Chinese electric vehicles. The investigations, targeting products from France, Spain, the Netherlands, and Denmark, are seen as China’s response to pressure EU members into dropping tariffs on Chinese EVs. These tit-for-tat measures reflect a broader trade dispute, with China accusing the EU of unfair subsidization benefiting its electric vehicle industry. The move threatens to deepen the trade conflict, potentially affecting not only manufacturers but also escalating retaliatory actions between the two economic powers.
China is conducting anti-dumping investigations into EU imports, focusing on brandy and pork from the bloc, as the tariff war entered a new phase on Friday with the imposition of provisional EU duties on imports of Chinese-made electric vehicles.
As reported by OilPrice.com, China’s Commerce Ministry announced on Friday that it will conduct a hearing later this month to discuss its continuing probe into EU brandy shipments. In another investigation, China is looking into anti-dumping charges against imported pork and its byproducts from the EU.
According to analysts, the brandy probe appears to be focused on France, while the pork imports investigation is most likely aimed at Spain, the Netherlands, and Denmark.
With these tit-for-tat probes, China looks to be attempting to press Spain and France’s hand in the EV tariff problem and have them persuade other EU members to drop the tariffs.
The German auto sector has previously stated that the interim tariffs, which went into effect on July 5, are not in the EU’s best interests.
In October 2023, the EU initiated anti-subsidy investigations targeting EV imports from China to see whether Chinese value chains benefit from illegal subsidies.
This past month, the European Commission “provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidization, which is causing a threat of economic injury to EU BEV producers.”
The provisional import taxes, which are in addition to an existing 10% duty, will last no more than four months.
“Within that timeframe, a final decision must be taken on definitive duties, through a vote by EU Member States. When adopted, this decision would make the duties definitive for a period of five years,” the Commission said on Thursday.
The VDA, Germany’s automakers’ group, declared this week that the anti-subsidy tariffs will not achieve their “stated goal of ensuring fair competition conditions and protecting the domestic industry from unfair practices.”
“The European anti-subsidy tariffs would not only affect Chinese manufacturers but also European companies and their joint ventures in particular,” VDA said. It added that the imposition of the tariffs “will lead to countermeasures and retaliatory measures and carries a real risk of escalating the trade conflict with China.”
Recently, GreatGameIndia reported that the European Commission declared on Wednesday that, starting early this month, it will impose tariffs as high as 48% on Chinese electric vehicles.
