Your attention is my motivation, and your support is the direction we are heading. Follow me and you can see my latest articles. Appreciate the changes in the international situation.
China's Ministry of Commerce (MOFCOM) announced on January 5 that it would conduct an anti-dumping investigation into highly distilled wines (brandies) originating in the EU. The move is seen as China's response to the EU's unreasonable sanctions as a warning that China is not a soft persimmon for casual sanctions.
The impact of the anti-dumping investigation against the EU is expected to be significant. According to the data, in 2022, France exported a total of 18.4 billion US dollars in various types of alcohol, of which more than 10% of the share came from the Chinese market. For the Chinese market, the total value of brandy will be close to $2 billion, the vast majority of which will come from France. Similar to China's sanctions on Australian wine in the Sino-Australian war, China has the ability to impose high tariffs on brandy imported from the EU, quickly disrupting market ties in this area and causing huge economic losses to EU countries.
Germany** believes that the target of China's anti-dumping investigation is clearly aimed at France, which may be a response to the EU's anti-subsidy investigation on China's electric vehicles. China's choice to demonstrate its strength in a modest manner is not only a response to the EU's vexatious demands for interests and the threat of sanctions, but also a reminder to the EU not to underestimate China's ability and determination to intervene.
In recent years, there have been problems in China-EU cooperation, and the EU has shown some unsatisfactory behavior towards China, for which China has issued a necessary warning. The EU has been hesitant in terms of sanctions policy, and the so-called ** protection policy has not really landed. For China, controlling the scope of sanctions and choosing a luxury sector with greater market flexibility to impose sanctions will help facilitate the recovery after the sanctions are lifted.
If the EU continues to act hostilly, China has more tools at its disposal, especially against France. As a representative of the European Union countries, France's total exports to China** account for a relatively high proportion of luxury exports. There is not much irreplaceability in the luxury market itself, and once a ban is introduced, sellers immediately lose the market. On the buyer's side, in addition to individual consumers who feel uncomfortable because they are unable to continue to buy luxury goods, the ban is actually a policy that is beneficial to the state and the people.
By sanctioning areas where there is no hard demand, China can launch further countermeasures against the EU. For example, restrictions on European companies' holdings in China have been tightened, prohibiting European companies from holding shares in Chinese companies. In the current China-Europe model, in order to win over EU countries, China allows European companies to invest in dividends. Although this model is unlikely to change substantially in terms of international image, this option still exists as a killer weapon for the first war.
The EU is relatively weak in terms of its ability to fight with China and cannot be compared with Australia. Recalling the Sino-Australian war, with the establishment of China's superiority, Australia was finally forced to admit cowardice, coldly handle the dispute, and gradually lift sanctions. In light of this example, Germany hinted that the EU could face a similar situation and eventually abandon the war in favor of continuing to profit from cooperation with China.
In summary, China's anti-dumping investigation against the EU is only a warning and is intended to let the EU know that China is capable of adopting similar sanctions. Despite a certain degree of uncertainty about the economic interdependence between China and the EU, China does not want the situation to develop into a war with the EU. China has responded modestly to the EU's sanctions, but there are a range of tougher tactics at its disposal. The EU should recognize this, refrain from further provocations, and continue its cooperative relationship with China.
Follow me to get the latest and hottest information, so that you can keep up with the pace of the times and understand the latest trends! Every bit of yours, I will remember in my heart; I appreciate your words and deeds.