France has endorsed the EU’s decision to impose new tariffs on Chinese electric vehicles, prompting China to threaten tariffs on European cognac. Minister Sophie Primas emphasized ongoing negotiations with China, aiming for constructive dialogue despite rising trade tensions. The cognac industry feels compromised, with talks expected at the upcoming G20 summit. Primas highlighted the importance of protecting the cognac sector while addressing broader trade challenges, including anti-dumping investigations on EU pork and dairy products.
France Supports EU Tariffs on Chinese Electric Cars Amid Trade Tensions
In a significant move, France has backed the European Union’s decision to impose additional tariffs on electric vehicles imported from China. This action has triggered a retaliatory threat from China, which is considering tariffs on European brandies, including the iconic cognac.
During a recent address from Shanghai, Minister Delegate for Foreign Trade, Sophie Primas, emphasized that
negotiations with Beijing remain ‘clearly open’ concerning the potential Chinese tariffs on cognac. She did not dismiss the possibility of a response from Paris if necessary.
Primas spoke after a meeting with Chinese Commerce Minister Wang Wentao, highlighting the rising trade tensions between China and the EU. She noted, ‘We are not escalating a trade war; rather, we are committed to negotiations.’ This approach underscores France’s desire for constructive dialogue.
The cognac industry in France feels ‘sacrificed’ by the government’s stance, which supports the EU’s tariffs on Chinese electric cars, a decision finalized last week. In retaliation, China has threatened tariffs on European brandies, with cognac accounting for 95% of these exports. Since mid-October, Beijing has required importers to lodge a bond with Chinese customs. Primas indicated that discussions involving cognac producers, the French government, and the EU would take place, potentially at the upcoming G20 summit in Brazil and during talks among Prime Ministers.
Promoting Bilateral Relations with China
In her discussions, Wang Wentao advocated for a consensus between Beijing and Brussels regarding electric vehicles. He urged France, as a key EU member, to actively engage in encouraging the European Commission to pursue a sincere dialogue aimed at finding a mutually acceptable solution.
The potential imposition of tariffs on cognac could severely limit its market access in China, prompting Primas to state, ‘We are prepared to take all necessary technical and legal measures’ to protect this vital industry. Additionally, China is launching anti-dumping investigations into EU pork and dairy products, presenting further challenges for these sectors. Primas assured that these actions are being conducted in full compliance with WTO regulations and Chinese laws.
While attending the China International Import Expo (CIIE), a pivotal trade event, Primas conveyed a strong message of openness in bilateral relations. She remarked, ‘Our industrialists and farmers have long collaborated with China… We wish to see these bilateral relations continue to flourish.’ France is the guest of honor at the CIIE, showcasing approximately 130 companies at the event.