Photo: CFP

China's Ministry of Commerce (MOFCOM) said on Tuesday that it would take "temporary anti-dumping measures" on brandy imported from the European Union,MKsport as preliminary findings indicate that the product is being dumped in the market.

Starting from Friday, importers will be required to pay a corresponding guarantee to Chinese customs when importing EU-origin brandy products, according to a statement MOFCOM released. 

In accordance with relevant Chinese laws and regulations and World Trade Organization (WTO) rules, China has legally decided to impose the measures, a spokesperson for the ministry said. 

A preliminary ruling from MOFCOM on August 29 indicated that brandy from the EU is being dumped, which poses a significant threat to China's domestic brandy industry. Due to European dumping practices, China's domestic brandy industry has been threatened, the ministry said.

The name of the investigated product is "spirits obtained by distilling grape wine in containers holding less than 200 liters (usually called brandy)."

MOFCOM's action has two primary objectives - to protect the legitimate rights and interests of Chinese enterprises and to further regulate market order, Cui Hongjian, a professor at the Academy of Regional and Global Governance with Beijing Foreign Studies University, told the Global Times on Tuesday.
The action is about focusing on China's own agenda to take a more proactive approach to uphold the multilateral trade rules centered around the WTO and to defend the interests of Chinese companies, Cui said.

"Yet, this will inevitably have related effects under the context, prompting the European side to view bilateral relations more objectively and comprehensively. It should not devolve into a zero-sum game, as that would only weaken the shared economic and trade foundation of both sides," Cui noted on Tuesday.

The China-EU economic relationship has a long history of mutual dependence and is highly complex. Both sides should work together to safeguard the interests of economic and trade cooperation, Cui told the Global Times.

Regarding ongoing anti-dumping and anti-subsidy investigations into imports of relevant pork and pork by-products, as well as dairy products from the EU, China is currently conducting investigations in accordance with the law, ensuring that the rights of all stakeholders are fully protected, and will make objective and fair determinations based on the investigation results, the MOFCOM spokesperson said.

Additionally, China is studying measures to raise tariffs on imported high-displacement fuel vehicles. China will take all necessary measures to firmly safeguard the legitimate rights and interests of its industries and enterprises, the spokesperson emphasized.