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China’s imposition of anti-dumping duties on European Cognac is “unfair” and “unjustified”, a European Commission spokesperson said on Friday, underscoring a downtick in relations ahead of an EU-China summit scheduled for the end of July.
“China’s measures are unfair, we believe they are unjustified, we believe they are inconsistent with the applicable international rule and are thus unfounded,” Commission spokesperson Olof Gill said on Friday.
The Asian giant has announced anti-dumping duties of up to 34,9% over EU brandy for a period of five years starting from 5 July 2025, sparing some of the largest EU Cognac producers which had made minimum price commitments, such as Remy Cointreau, Pernod Ricard and LVMH’s Hennessy.
The Chinese launched an investigation into brandy last year in retaliation for tariffs imposed by the EU on Chinese electric vehicles. It was followed by the announcement of several other investigations into EU pork and dairy products, which have not yet been closed.
Anti-dumping duties were also imposed in May on some EU industrial plastics.
Gill added that the duties on EU brandy were “part of a worrying pattern of China abusing trade defence instruments, starting and conducting investigations on the basis of questionable allegations and insufficient evidence, all this within a short period of time.”
This blow to EU brandy comes as some media report that China has cancelled the second day of the EU-China summit scheduled for 24 and 25 July.
The Commission’s chief spokesperson Paula Pinho refused to confirm the cancellation, arguing that the summit’s agenda “has not been agreed yet” by the EU and China.
Points of contention are increasing between the two, despite hopes for a diplomatic reset born of the jeopardy both sides face in the face of an ongoing tariff dispute with the US.
The South China Morning Post reported on Friday that Chinese Foreign Minister Wang Yi told EU’s top diplomat Kaja Kallas it did not want to see a Russian loss in Ukraine because it feared the US would then shift its whole focus to Beijing.