The European Union has imposed tariffs on Chinese electric vehicles (EVs) following an initial investigation. In response, China has enacted duties on European brandy imports, accusing European producers of “dumping” — selling goods below cost to outcompete local industries. These allegations, particularly against French luxury cognac brands, have been denied by both industry groups and French officials, who argue there’s no dumping involved.
China’s retaliatory measures seem to specifically target French cognac, as France was a significant advocate for investigating the effects of subsidized Chinese goods on the European market. French officials have long criticized the influx of heavily subsidized Chinese imports into the EU and the restricted access European companies face when trying to enter the Chinese market.
In response, French President Emmanuel Macron announced that France and China are set to begin a “technical process” to address the dispute, although he didn’t elaborate on the specifics. Once the process is completed, Barnier, potentially in a diplomatic role, will travel to China for discussions with Chinese Premier Li Qiang.
Macron also emphasized France’s push for the EU to develop greater “strategic autonomy,” meaning stronger economic security and protection from unfair trade practices. During a bilateral meeting with Chinese President Xi Jinping, Macron advocated for fairer trade relations, stating, “We would like our partners to show the same openness as the European Union. You know how committed we are on this point.”
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