Beijing said on Thursday it would not impose provisional tariffs on brandy imported from the European Union despite finding it had been sold in China below market prices, giving both sides room to breathe in tense trade talks, APA reports citing Reuters.
China's commerce ministry said in a statement it had found that European distillers had been selling brandy in its 1.4 billion-strong consumer market at a dumping margin in the range of 30.6% to 39% and that its domestic industry had been damaged.
"Provisional anti-dumping measures will not be taken in this case for the time being," the ministry said, leaving open the possibility Beijing may act in the future.
Previously, the ministry had said the probe was expected to end before Jan. 5, 2025, but that it could be extended "under special circumstances".
China has been canvassing the bloc's 27 member states to reject the European Commission's proposal to adopt additional duties of up to 36.3% on Chinese-made electric vehicles in an October vote, and the decision not to impose tariffs on brandy could be seen as helpful to its case.
"This looks like a negotiation tactic from China," Barclays analyst Laurence Whyatt said, expecting to see a link between EU tariffs on Chinese EVs and Chinese action on EU brandy imports.
"Can they persuade the EU to roll back some of the measures that have been imposed?"
An EU Commission spokesperson said the development would not influence its decision on EV duties, describing the two investigations as "separate tracks".
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