China is launching an anti-dumping investigation into liquor products like brandy from the European Union, its Ministry of Commerce said Friday, as trade tensions between Beijing and Brussels intensify.
The investigation will focus on brandy products that come in smaller than 200 litre containers from the EU, the statement said, without specifying any companies, and is being launched because of an application from a domestic liquor association.
Shares in drinks giants Diageo, Pernod Ricard and Remy Cointreau all fell sharply after the announcement.
The move comes months after the EU started an investigation into Chinese subsidies for electric vehicles in a bid to wave off a flood of cheap imports. The bloc also opened an anti-dumping probe into biodiesel from China in December.
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China previously looked into foreign liquor imports when geopolitical tensions flared with Australia, resulting in anti-dumping tariffs imposed on Australian wines in containers holding 2 litres or less for 5 years starting March 2021.
China imported $1.57 billion (€1.43 billion) worth of spirits from distilled grape wine in 2023 through November, among which 99% of the products are from France, according to China customs data compiled by Bloomberg. --Bloomberg
