China's Brandy Battle: New Tariffs and Trade Talks

Trade tensions between China and European countries are heating up. China has just slapped new anti-dumping duties on European brandy, especially French cognac. This move comes after a long investigation into whether European brandy was being sold too cheaply in China, hurting local producers. The tariffs, which kick in tomorrow, range from 27. 7% to 34. 9%. They'll stay in place for five years, but won't apply to past sales. Some big cognac makers, like Pernod Ricard and Hennessy, are off the hook. They just have to keep their prices above a certain level. French President Emmanuel Macron called the exemptions a good first step. He said France will keep pushing to protect its brandy industry. Meanwhile, Chinese Foreign Minister Wang Yi is in Europe, trying to smooth things over. He's been in Brussels and Berlin and is heading to Paris next. French Foreign Minister Jean-Noël Barrot plans to talk about this with Wang later today. He said the exemptions are a positive move, but there's still work to do. Some important players are still left out, and France wants to get back to how things were before this whole mess started. This isn't the only fight China and Europe are having. China is also looking into European pork and dairy products. The brandy dispute started after the EU investigated Chinese electric vehicle subsidies. It's all part of a bigger trade spat that's been going on for a while. Later this month, China and the EU will have a big trade summit in Beijing. Hopefully, they can work things out. But for now, the brandy battle is just one more sign of the growing trade tensions between China and its Western allies.