China announced on Wednesday that it was extending its anti-dumping investigation into imports of brandies and cognac from the European Union due to the “complexity” of this file, the subject of a standoff over customs taxes between Beijing and Brussels.
Beijing opened an investigation into imports of European brandy in January after the European Commission opened an investigation into state subsidies benefiting electric vehicles manufactured in China, the low prices of which distort competition according to Brussels.
Beijing had initially indicated that its investigation into European brandies would likely be completed in January, but the Commerce Ministry announced on Wednesday that it would last until April 5.
The ministry did not provide details, saying only that it was extending “time of investigation” because of “the complexity of this matter”.
In November, China announced that it would impose “temporary anti-dumping measures” on brandy imported from the EU. In October, China decided to require European importers to post a deposit with Chinese customs.
Cognac, a French specialty, alone represents 95% of European brandies.
The European Union challenged these measures before the World Trade Organization (WTO).
Beijing’s move appeared as retaliation against Brussels after the EU imposed additional customs surcharges on electric vehicles made in China and sold in the EU.