China’s anti-dumping investigation into the European cognac industry is a response to EU tariffs on Chinese electric cars, according to Jean-Jacques Guiony, chief financial officer of LVMH (owner of the Hennessy and Remy Martin brands).
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“You can be a regional player with a special role in globalisation, as in our case, and at the same time be held hostage to a series of conflicts that have nothing to do with your activities,” Gioni told Reuters.
The CFO of a French luxury goods manufacturer believes the company’s Chinese business was hit by a “stray bullet.” According to him, the owner of Hennessy and other alcohol brands does not engage in dumping when setting market prices for cognac and brandy.
Chinese authorities launched an anti-dumping investigation in January following a complaint by the China Liquor Association. EU producers are accused of artificially lowering brandy prices.
European brands will participate in the anti-dumping investigation hearing in Beijing on July 18. French cognac makes up the majority of China’s brandy imports.
China announced plans to hold the hearings this week after the European Union imposed additional tariffs on electric vehicles imported from the Asian country.
As a result of the protective measures, some manufacturers must pay a 47.6% tax when importing electric cars into the European Union.
Author:
Akhmed Sadulayev
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
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