Frances Counter - measures against EU Electric Vehicle Tariffs: Brandy Faces Temporary Anti - dumping, and the Shadow of a Trade War Shrouds Europe

On October 29 local time, Politico EU, the European edition of the American political news website, reported that although the French government previously supported imposing tariffs on Chinese electric vehicles, it still strongly objected to Chinas temporary anti - dumping measures on brandy, calling it unacceptable. This shift in stance highlights the complex situation within the EU regarding trade policies towards China and also reflects the widespread impact of trade protectionism on major European industries.

According to reports, Sophie Primas, the French Deputy Minister of Trade, plans to visit China next week. During the visit, she will directly safeguard rights with the Chinese side and discuss issues related to Chinas taxation on brandy and the new investigations into the EUs dairy and pork industries. Anonymous French officials revealed that the French government believes these anti - dumping investigations are of obvious political nature, aiming to make France pay the price for the EUs tax increase on Chinese electric vehicles. Therefore, Primas will oppose this purely political stance during her visit to China.

This move comes during the US presidential election, and the changing political environment has made trade disputes more complex. If Trump wins the general election on November 5, his advocated trade war strategy may not only disrupt the subsequent negotiations between the EU and China on electric vehicle tariffs but also reshuffle the trade relations between the EU, China, and the US. This series of policy trends has attracted widespread attention from the market and the industry.

Against the backdrop of the EUs insistence on promoting the tariff proposal against China, on October 4, in the final vote on whether to impose countervailing duties on imported Chinese electric vehicles, the EU member states voted with 10 in favor, 5 against, and 12 abstaining, failing to block the European Commissions tariff proposal. Subsequently, on October 8, the Chinese Ministry of Commerce announced the implementation of temporary anti - dumping measures on imported brandy from the EU, involving a number of products such as dairy products, pork products, chemical products, and brandy. EU media generally believe that this move by China is a retaliatory measure against the EUs insistence on increasing tariffs on Chinese electric vehicles. As soon as this news came out, the share prices of French spirits producers were severely hit, showing the markets sensitive reaction to trade tensions.

France has always been one of the firm supporters of the EUs tariff policy on Chinese electric vehicles. Precisely because of this, the EUs tax - increasing move has made major French export products such as brandy and cheese the key targets of Chinas counter - measures. Public information shows that the EU is the worlds largest brandy - producing region, and almost all (99.8%, according to Chinese customs data) of the brandy products exported to China are produced in France. Well - known brands such as Pernod Ricard and Remy Cointreau have reaped substantial profits in the Asian market.

Brandy producers and grape growers in the Cognac region of France have always opposed the EUs tax - increasing stance towards China, believing that they have become victims of the policy. Antoine Buron, the president of the General Federation of Cognac AOC Grape Growers, said that one - quarter of Cognacs export value comes from the Chinese market, and Chinas anti - dumping measures will force them out of the Chinese market, which they cannot accept. In addition to brandy, the pork and dairy industries of France and several other EU member states are also highly dependent on the Chinese market. In June this year, industry executives and analysts from many European countries pointed out that China is a precious and important pork export market. If China restricts the import of pork from Europe, the European pork industry will face a nightmare.

At the same time, the French luxury goods industry is also feeling significant pressure. Jean - Pierre Raffarin, the former French Prime Minister and former Special Representative for Chinese Affairs, suspects that China will target French luxury goods next. He told Reuters earlier this month: In the luxury goods industry, Chinese customers are often decisive. This has further increased the unease of French luxury goods companies about Chinas trade policies.

On October 29, the European Commission announced the imposition of a so - called final countervailing duty on Chinese electric vehicles for five years. Although China strongly disagrees with this and has filed a lawsuit under the dispute settlement mechanism of the World Trade Organization (WTO), China will continue to take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises. The EUs tariff decision this time not only affects the electric vehicle industry but also spreads to other high - value French export products, causing greater pressure and challenges for the relevant industries in France and other EU countries.

Hildegard Müller, President of the German Association of the Automotive Industry (VDA), issued a statement on October 29, strongly condemning the EUs decision to impose tariffs on Chinese electric vehicles, calling it a rollback of global free trade that would have a negative impact on Europes economic prosperity, employment, and overall economic growth. Müller warned that this move could increase the risk of trade conflicts and ultimately harm the healthy development of the entire automotive industry. She called for resolving trade disputes through dialogue and negotiation, and suggested that the government take measures to enhance Germanys international competitiveness, promote market diversification and innovation, to ensure Germanys active role on the global stage.

Müller further pointed out that the imposition of tariffs would directly lead to an increase in the cost of cars for European consumers, which might hinder the promotion and popularization of electric vehicles. She called on all parties to keep the door open for negotiations and strive to find solutions to eliminate the additional tariffs through dialogue within the framework of the WTO, so as to avoid causing greater disruptive impacts on the global automotive market.

The continuous adjustment of the EUs trade policy towards China, especially the tariff measures on high - tech and high - value - added products, is reshaping the global trade pattern. The main export industries in France and other EU countries, facing counter - measures from the Chinese market, are striving to seek new market opportunities and partners to maintain their competitiveness in the international market. At the same time, the uncertainty of the global trade environment and geopolitical tensions require companies in various countries to more flexibly adjust their supply chains and market strategies to cope with the changing trade policies and market demands.

Overall, the EUs decision to impose counter - subsidy tariffs on Chinese electric vehicles and other high - value products is both a response to the competitiveness of the Chinese electric vehicle market and an embodiment of the protectionist tendency within the EU. The implementation of this policy not only has a profound impact on China - EU trade relations but also poses new challenges to the global trade system and the principles of free trade. In the future, all parties need to seek an effective path to balance protecting domestic industries and maintaining global trade freedom through multilateral cooperation and international dialogue, in order to achieve common prosperity and sustainable development.