China-EU trade dispute escalates, Beijing officially "takes action", France immediately speaks up

China announced on October 8 that it would impose temporary tariffs on spirits imported from the European Union (EU), marking a new escalation in the trade dispute between the two sides.

China imposes temporary tariffs on imported spirits from the EU. (Source: Global Times)

Starting from October 11, importers will have to submit a “corresponding guarantee” to Chinese customs when importing spirits products originating from the EU.

This amount will be based on calculations involving customs approved prices as well as import duties.

After the 27-member bloc launched an investigation into China's electric vehicle subsidies, the world's second-largest economy has launched an investigation into EU spirits.

Beijing said it had found evidence of dumping on some imported spirits originating from the cartel, threatening to cause significant damage to the domestic spirits industry.

China's Ministry of Commerce has released a detailed list of the tax rates each company is expected to pay, ranging from 30.6% to 39% depending on the business.

The bloc opposes this decision, saying that Beijing's above measures are baseless and will sue the World Trade Organization (WTO).

Meanwhile, French cognac producers called for an end to the escalation, warning the industry was under threat.

Shares in major French spirits companies fell sharply on the news.

Source: https://baoquocte.vn/tranh-chap-thuong-mai-trung-quoc-eu-them-leo-thang-bac-kinh-chinh-thuc-ra-tay-phap-lap-tuc-len-tieng-289363.html