BRUSSELS (dpa-AFX) - China is examining countermeasures in the trade dispute with Brussels. Following the introduction of provisional additional EU punitive tariffs on Chinese electric cars, Beijing is scrutinizing imports of European brandy. In an ongoing anti-dumping investigation into brandy from the European Union, China wants to listen to domestic companies, according to the Ministry of Commerce. At a meeting on July 18, possible damage to the Chinese industry is to be discussed. Beijing's measures could primarily affect manufacturers from France.

Brandy investigations have been ongoing for some time

Beijing has been investigating spirits imported from the EU since January 5. These investigations and those against pork and pork products from the EU are seen as Beijing's reaction to investigations in Brussels against e-cars.

Anti-dumping investigations are based on the accusation that the products under investigation are being offered at artificially lower prices than usual on the respective market. Several producers and industry associations have requested the investigation. According to the Chinese Ministry of Commerce, it allowed the investigation in order to ensure fairness in the proceedings.

Vote on final duties

As long as no final decision is taken on the introduction of EU punitive tariffs, they do not have to be paid, only security deposits have to be made. If negotiations with China do not proceed satisfactorily, the EU Commission could submit a proposal for the introduction of punitive tariffs. The EU member states could only stop these if a so-called qualified majority voted against them.

German industry: punitive tariffs would have disadvantages for buyers

If special tariffs are actually introduced, Thomas Peckruhn, Vice President of the German Association of the Motor Trade (ZDK), fears disadvantages for the German market: "For consumers, the electric vehicles available will become significantly more expensive, especially as the competitive pressure on European manufacturers will decrease."

The German government and German car manufacturers are also skeptical about punitive tariffs. They are concerned that retaliatory measures could primarily affect German car manufacturers, for whom China is a very important market.

Brussels and Beijing ready to negotiate

In principle, China and the EU Commission are prepared to reach a solution in the next four months until the measures are finally introduced. Vice-Chancellor Robert Habeck (Greens) negotiated in China almost two weeks ago, but did not achieve a breakthrough. Nevertheless, the EU Commission still sees a chance for a solution.

EU Commission certain: there are unfair Chinese subsidies

After an extensive investigation, the EU Commission came to the conclusion: There are unfair Chinese subsidies. The provisional duties of the EU authorities now amount to 17.4 percent for the manufacturer BYD, 19.9 percent for Geely and 37.6 percent for SAIC. Other companies will have to pay 20.8 percent, and companies that did not cooperate with the investigation would have to pay a 37.6 percent penalty. The duties are in addition to an existing tariff of ten percent.

Many markets are taking stronger action against China

Some of the tariffs are significantly lower than those in the USA, for example: other countries are taking tougher action against imports from the Far East. Although China is the largest car market in the world, many markets have already become more expensive for Beijing itself. In May, the United States imposed special tariffs of 100 percent on e-cars, which has virtually blocked the market for imports from China.

"The Americans are now sealing off their market, as are Brazil, Mexico and Turkey," Commission President Ursula von der Leyen recently told Redaktionsnetzwerk Deutschland. This means that Europe remains an attractive market for Chinese companies for the time being./scr/DP/stk