EU Commission Slams Unfair Chinese Cognac Duties
EU‑China Trade Tensions Disrupt July Beijing Summit Plans
The latest flare‑up in trade relations between the European Union and China is casting a shadow over the scheduled bilateral summit in Beijing at the end of the month.
Key Points:
- Raging trade disputes have escalated, raising concerns about the viability of the summit.
- Both sides face increased tariffs and regulatory hurdles that could impede cooperation.
- Diplomatic talks are now on a tighter timeline as mutual expectations shift.
- Stakeholders are reassessing priorities in light of ongoing economic friction.
Impact on Summit Arrangements
Negotiations for the upcoming meeting are being restructured to address:
- Possible delays in final agreements due to trade concerns.
- The need for clearer communication channels between EU and Chinese officials.
- Exploration of alternative forums to sustain dialogue amid tensions.
Looking Forward
Both sides are actively seeking solutions to maintain the integrity of the summit while navigating the complex trade backdrop, with hopes that cooperation can resume before July concludes.
EU‑China Tension Escalates Over New Brandy Tariffs
On Friday, a spokesperson for the European Commission described China’s recent anti‑dumping tariffs on European brandy as “unfair” and “unjustified,” signalling a deepening rift ahead of the scheduled EU‑China summit at the close of July.
China’s Measures and Their Impact
Starting 5 July 2025, China will impose anti‑dumping duties of up to 34.9% for five years on EU cognac and brandy. Remy Cointreau, Pernod Ricard, and LVMH’s Hennessy were exempted due to prior price‑commitments.
China’s scrutiny began last year after the EU imposed tariffs on Chinese electric vehicles. The investigation was followed by probes into EU pork, dairy, and industrial plastics, most of which remain unresolved.
Commission’s Stance
Commission spokesperson Olof Gill called the tariffs “unfair” and “inconsistent with international rules,” adding that China’s pattern of trade‑defence tactics appears “worrying.”
Key Concerns Highlighted
- Short‑term investigations with limited evidence.
- Broad application of anti‑dumping duties without clear justification.
- Potential escalation of trade disputes with the United States.
Summit Status Under Scrutiny
Media reports suggest China may cancel the second day of the EU‑China summit scheduled for 24–25 July. Commission chief spokesperson Paula Pinho denied confirmation, noting that the agenda had not yet been finalized between the two sides.
Diplomatic Pressures
Both the EU and China are navigating a complex array of relations, including a concurrent U.S. tariff agenda. A recent statement by Chinese Foreign Minister Wang Yi to EU diplomat Kaja Kallas hinted at a desire to avoid a Russian‑fueled conflict in Ukraine, fearing U.S. focus might shift to Beijing instead.
Looking Ahead
The new duty structure is set to reshape trade dynamics in the beverage sector, while the upcoming summit remains fraught with uncertainties. Both parties will need to address these contentious points to prevent a broader economic fallout.
