China extends EU brandy anti-dumping investigation by three months

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 guidance.

The probe, which was launched on Jan. 5 and due to be completed in a year, will be extended to April 5 due to the “complexity” of the investigation, the ministry said in a brief statement, without elaborating.

The ministry previously said the probe could be extended by six months under special circumstances.

Preliminary findings from the probe have shown dumping of EU brandy threatens to damage China’s sector, the ministry said in October as it imposed temporary measures on EU brandy imports, hitting French brands including Hennessy and Remy Martin.

The probe was widely seen as the outcome of France’s support of EU tariffs on China-made electric vehicles. French President Emmanuel Macron previously called the probe “pure retaliation”.

The Chinese measures require China’s importers to pay security deposits of nearly 40% if they wish to import brandy from the bloc, making it more costly upfront to ship brandy from the EU.

France’s trade ministry previously called the Chinese measures “incomprehensible”, and that they had violated free trade.

Last month, the EU Commission said it had formally brought the provisional Chinese anti-dumping measures to the World Trade Organization.

French brandy shipments to China reached $1.7 billion last year and accounted for 99% of the country’s imports of the spirit.