China's Legitimate Trade Remedy Measures Against EU Brandies: What You Need to Know
In a move that has sent shockwaves through the financial markets, China has imposed anti-dumping measures on brandies imported from the European Union. The commerce ministry has defended these actions as "legitimate trade remedy measures" in response to the threat of substantial damage to the domestic industry.
French brands like Hennessy and Remy Martin are among those facing the strictures, which come just days after the EU voted for tariffs on Chinese-made electric vehicles. This has sparked the biggest trade row between the two economic powerhouses in a decade.
The ministry has stated that the EU's actions against Chinese EVs violate World Trade Organization rules and lack a factual and legal basis. China has lodged a strong protest with the WTO in response.
Trade tensions have escalated further with the announcement of an anti-dumping and anti-subsidy investigation into EU pork products. The ministry has promised to deliver "objective and fair" decisions once the investigation is complete.
Furthermore, there is consideration of a tariff hike on imports of large-engine vehicles, particularly impacting German producers. German exports of vehicles with engines 2.5 liters or larger reached $1.2 billion last year.
This development underscores the growing trade tensions between China and the EU, with potential implications for global markets and economies. Investors and traders should monitor these developments closely to assess the impact on their portfolios and financial strategies.