Beijing’s decision comes after the EU decided not to impose provisional and retroactive duties on made-in-China electric vehicles (EVs) during its own probe. Chinese President Xi Jinping had also committed during a May visit to Paris not to impose duties until the probe’s conclusion in January 2025.
The Chinese investigation was seen as retaliation to Brussels’ investigation into state subsidies into Chinese EVs. The move clearly targeted the French luxury cognac brands that make up 99 percent of China’s imports of those liquors.
The sector has repeatedly warned that it shouldn’t be taken hostage of the geopolitical tensions between Beijing and Brussels. In a sign of market relief at the Chinese announcement, shares in French drinks group Rémy Cointreau rose by 8 percent Thursday.
China is the second biggest export market for the French cognac sector, after the United States, according to figures provided by the BNIC, France’s cognac governing body.
