French Brandy Makers Sacrificial Lambs In China-EU Trade War

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The Chinese ministry had said on August 29 that it would not impose provisional duties on EU brandy. At that time, Chinese and European officials were having final negotiations on the EV tariff issue with Beijing suggesting raising prices of its EVs to resolve the disputes.

But Beijing's efforts to stop the EV tariffs were proven unsuccessful last week.

Blaming France

On October 4, five EU member countries, including Germany and Hungary, voted against the tariffs imposed by the European Commission on Chinese EVs, AFP reported , citing several unnamed European diplomats.

Ten member states including France, Italy and Poland voted for the EV tariffs while 12 countries including Spain and Sweden abstained.

Hildegard Mueller, president of the German Association of the Automotive Industry (VDA), said the tariffs on Chinese EVs mark a step back for global cooperation. He said China and the EU should continue negotiations and avoid further escalation and potential trade conflicts.

He praised the German government for having voted against the EV tariffs and firmly defended the interests of Europe and the German automotive industry.

“French auto firms such as Peugeot, Citroën and Renault had glory days in the Chinese market but now they only have a less than 1% market share in China,” a Jiangsu-based columnist using the pseudonym“Jianshiyijin” says in an article.

“The French auto firms and government want to boost the EV sector and sell 800,000 EVs annually by 2027,” he says.“It means that someone will have to lose market shares. That's why China has become a scapegoat.”

“China can consider imposing extra tariffs on a wide range of French goods, from airplanes to agricultural and sideline products such as red wines,” he says.“France's luxury products such as handbags, perfumes and clothings should also be targeted.”

Tried all means

“China has already tried all methods to avoid a tariff war with the EU,” a Zhejiang-based writer says in an article.“We don't need to wallow in sadness and disappointment. Since the EU fired the first shot at us, it's time to see how we can effectively fight back.”

He says the 10 EU member states that voted for the EV tariffs should be targeted by China's retaliation, especially France.

“France had played a crucial role in approving the EV tariffs suggested by the European Commission,” he says.“As the saying goes, 'It's better to cut off one finger of an enemy than to hurt his ten fingers.' Our retaliation should target France and make it pay a heavy price for its actions.”

He says China may consider imposing tariffs on French products including aircraft and related parts, red wines, dairy and pork products, cosmetics, cases and bags, jewelry, clothing and watches.