China EU Photo:VCG

China's temporary anti-dumping measures on certain brandy imports originating from the EU are legitimate trade remedies fully in line with World Trade Organization (WTO) rules, said an official with China's Ministry of Commerce (MOFCOM) on Monday.

In response to a media query on the consultation request filed by the EU over these measures through the WTO dispute settlement mechanism, an official with the ministry said the Chinese side has received a request for consultation from the EU over the matter and will handle it in accordance with WTO rules, according to MOFCOM.

"I would like to reiterate that as a member of the WTO, China has always used trade remedy measures with prudence and restraint to safeguard fair and free trade," the MOFCOM official said.

The temporary anti-dumping measures imposed on brandy imports from the EU are legitimate trade remedy measures taken in accordance with Chinese laws, at the request of domestic industries and based on fair and equitable investigations. They are fully in compliance with WTO rules, the official noted. 

China has the responsibility to safeguard the legitimate demands and lawful rights and interests of domestic industries, the official further noted.

Chinese experts noted that, unlike the EU's unilateral action in initiating an anti-subsidy probe into Chinese electric vehicles (EVs), China's temporary anti-dumping measures on certain brandy imports align with both China's national laws and WTO regulations, with the investigation being driven by requests from the relevant industry.

"We initiated the corresponding measures in response to requests from domestic industry, and a move like this is in line with WTO rules," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said on Monday.

Unlike the EU's unilateral measures on Chinese EVs, China's temporary anti-dumping measures on brandy from the EU aim to protect the interests of domestic industries, in response to industry demands, and they are fully compliant with WTO rules, Cui Fan, a professor from the University of International Business and Economics, told the Global Times on Monday, noting that China's approach emphasizes multilateral cooperation and consultation.

"The EU should adopt a reciprocal stance over this matter, addressing concerns through dialogue and negotiation in order to achieve a mutually beneficial outcome," Cui said, noting that this will not only help maintain a fair trade environment but also promote the sustainable development of global industries.

On January 5, China decided to launch an anti-dumping investigation into certain brandy imported from the EU following a request from the domestic brandy industry. On August 29, MOFCOM said that a preliminary assessment showed that imported brandy from the EU involves dumping, therefore the domestic brandy industry is under substantial threat of damage, and there is a causal relationship between the dumping and the substantial threat of damage, according to an announcement by MOFCOM on November 12.

The announcement detailed companies for whose products importers must provide deposits or letters of guarantee, with dumping margins ranging from 30.6 percent to 39.0 percent for each company.

Starting from November 15, when importing the products under investigation, importers must submit deposits or letters of guarantee to China's customs authorities based on the dumping margins as specified in the announcement, according to MOFCOM.

These measures themselves are somewhat temporary in nature, Zhou said, noting that if both sides can address the concerns and worries of businesses, and promote fair trade, it is possible to find a potential solution.

"It is hoped the issue can be resolved through consultations to avoid further negative impacts and prevent the spillover of related effects," Zhou said.