EU tariffs on Chinese EVS spark brandy backlash from China

The EU decided last week to impose tariffs on Chinese electric vehicles, prompting a response from China. Interestingly, this response concerns not cars, but brandy. The Chinese Ministry of Commerce announced it will introduce temporary measures on the import of this liquor. This decision by Beijing will primarily impact France.

At the beginning of October, European Union member states agreed to introduce tariffs on Chinese electric vehicles. Beijing is the largest producer of electric vehicles in the world. The global export of these vehicles from China increased by 70% in 2023, reaching a value of €33.6 billion. The EU is the largest recipient of Chinese electric vehicles.

Germany, Hungary, Malta, Slovenia, and Slovakia opposed the tariffs. France and Poland, on the other hand, lobbied for their imposition.

Charlie Zhang, Vice President of Chery Automobile, expressed that restricting the import of electric vehicles from China, which he interprets as the aim of potential punitive tariffs, won't instantly boost the situation for European manufacturers. Instead, he emphasized his belief in the value of partnership.

Now, China's response has arrived. Starting Friday, 11th October, importers of brandy from the EU will need to pay security deposits to the customs authorities.

"The move mainly targets French luxury cognac brands," says Politico. France accounts for 99% of the brandy exports from EU countries. As reported on the X platform by the Deputy Director of the Centre for Eastern Studies, China threatened to impose tariffs on brandy earlier this year.

Politico notes that farmers are apprehensive of a similar move by China, mainly concerning two sectors: pork and dairy.

The brandy sector has repeatedly warned that it should not become a hostage to geopolitical tensions between Beijing and Brussels.