Why did China extend its EU brandy probe by three months?

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China Extends EU Brandy Anti-Dumping Probe Due to Investigation Complexity

China's Ministry of Commerce has extended its anti-dumping investigation into brandy originating from the European Union by three months, pushing the deadline to April 5. This extension, less than the maximum allowed, is attributed to the "complexity" of the investigation. Preliminary findings from the probe indicated that the dumping of EU brandy poses a threat of damage to China's domestic sector.
Extension Rationale

The anti-dumping investigation, initiated on January 5, was originally slated for completion within a year. However, the Ministry of Commerce announced an extension to April 5, citing the intricate nature of the inquiry. While the ministry's regulations permit a special circumstance extension of up to six months, the current three-month extension falls within this scope, reflecting the ongoing assessment of the case's complexities.
Preliminary Findings and Provisional Measures

In October, the ministry revealed preliminary findings suggesting that the dumping of EU brandy could harm China's domestic industry. Following these findings, provisional measures were implemented on EU brandy imports, significantly impacting prominent French brands such as Hennessy and Remy Martin. These measures mandate that importers pay security deposits amounting to nearly 40 per cent of the value of EU brandy imports.
International Repercussions

The provisional anti-dumping measures imposed by China have drawn international attention and action. Last month, the European Union Commission formally lodged a complaint against these provisional Chinese measures with the World Trade Organisation. The French government has previously characterised the probe as "pure retaliation" and its trade ministry described the measures as "incomprehensible" and a violation of free trade principles.
Trade Significance

The trade volume between France and China in brandy is substantial, underscoring the significance of this investigation. French brandy shipments to China reached US$1.7 billion last year, representing a dominant 99 per cent share of China's total brandy imports for that period. This high dependency highlights the potential economic impact of the anti-dumping measures on both Chinese importers and French producers.

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Why did China extend its EU brandy probe by three months?

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