Chinese Commerce Ministry to hold hearing on anti-dumping probe into EU brandy

China's Commerce Ministry said on Friday that it will hold a hearing on July 18 into the anti-dumping investigation linked to brandy imported from the EU to ensure fairness and transparency of the probe. Chinese observers said this shows that China's investigation process strictly conforms to WTO rules, whereas the case has no relation to the EU's anti-dumping tariffs against Chinese electric vehicles (EVs).

In January, China launched an anti-dumping investigation into brandy imported from the EU following a request from the China Alcoholic Drinks Association on behalf of the domestic industry.

In response to the application of involved parties including Martell, Societe Jas Hennessy and E Remy Martin, the Ministry of Commerce (MOFCOM) will hold a hearing on July 18 in line with related laws and regulations in a bid to ensure the fairness and transparency of the investigation process, the ministry said in a statement published on its website.

"By holding the hearing, MOFCOM will obtain more information about whether EU brandy companies have dumping practices in the China market so as to decide whether to take following actions," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday.

This underscores that China strictly follows WTO rules and related laws in its investigation process, Zhou said.

China-EU bilateral trade volume is significant, and covers a broad range of products. It is normal that companies from both sides have their own concerns, and thereby China's anti-dumping investigation into EU brandy imports does not necessarily have relation to the EU's tariffs on Chinese EVs, Zhou said.

The European Commission (EC), the EU's executive arm, confirmed provisional import tariffs on major Chinese EV manufacturers starting from Thursday, despite strong opposition from government officials and major industry players within the bloc.

China's anti-dumping investigation into brandy imported from the EU, prompted by a complaint submitted by the domestic brandy industry, neither targets any specific EU member state nor carries predefined findings, China's Minister of Commerce Wang Wentao said when meeting with three French brandy trade associations and five French brandy producers in Paris in April.

China will conduct the investigation openly and transparently in accordance with Chinese law and WTO rules, while fully safeguarding the rights of all stakeholders, Wang stressed.

The anti-dumping probe will examine EU-produced brandy in containers holding less than 200 liters imported from October 1, 2022 to September 30, 2023. The probe is expected to end before January 5, 2025, but may be extended for half a year under special circumstances, according to a previous statement from MOFCOM.