Last week, China's Ministry of Commerce (MOFCOM) concluded its 18-month anti-dumping investigation on EU brandy. Effective July 5, final anti-dumping duties of 27.7% to 34.9% will apply, though some companies will be exempted due to price undertakings.

Following high-level diplomatic visits and escalating trade tensions, China has extended its anti-dumping investigation on EU brandy, which will particularly impact the French industry.

France has been caught in the crossfire of trade tensions between China and the EU. A recent trip to China by Sophie Primas, the French Minister Delegate for Foreign Trade and French Nationals Abroad, illustrates the delicate balancing act both sides are trying to perform.

China and France signed over 20 declarations and agreements to cooperate during President Xi Jinping's state visit to France, and both leaders expressed an interest in partnerships in trade and technology.

At the beginning of Chinese President Xi Jinping's state visit to France, there was a trilateral meeting in Paris with leaders from China, France and the European Union (EU), with trade and market access as the priority issues.

Today, China's Ministry of Commerce published an update on the anti-dumping investigation on European brandy, indicating the companies to be sampled and the categorization of the brandy products under investigation.

During Chinese Premier Li Qiang's visit to France last week, the two sides signed multiple cooperation agreements. Li also used the opportunity to stress China's vision of the China-France relationship and a more stable China-EU relationship, although the EU may have a different vision.