BEIJING (Reuters) – China's Commerce Ministry said on Wednesday it would extend its anti-dumping investigation into brandy originating from the European Union by three months, less than the full extension allowed under its previous directive.
The investigation, which began on January 5 and is scheduled to be completed within a year, will be extended until April 5 due to the “complexity” of the investigation, the ministry said in a brief statement, without going into details.
The ministry said earlier that the investigation could be extended for six months under special circumstances.
The ministry said in October that preliminary results of the investigation showed that dumping of European brandy threatened to harm the Chinese sector, as it imposed temporary measures on brandy imports from the EU, hurting French brands including Hennessy and Remy Martin.
The investigation is widely seen as a result of France's support for EU tariffs on electric cars made in China. French President Emmanuel Macron had previously described the investigation as “pure revenge.”
China's measures require Chinese importers to pay security deposits of nearly 40% if they want to import brandy from the bloc, making it more expensive to ship brandy from the EU upfront.
The French Ministry of Commerce previously described the Chinese measures as “incomprehensible” and in violation of free trade.
Last month, the European Commission said it had formally submitted China's temporary anti-dumping measures to the World Trade Organization.
French brandy shipments to China reached $1.7 billion last year and account for 99% of the country's spirit imports.
