BEIJING, Feb 11 (Reuters) – China could launch investigations into French wines or impose “reciprocal tariffs” on EU products if the French government pushes for tariffs on Chinese goods, a social media account affiliated with Chinese broadcaster CCTV said on Wednesday.
A French government strategy report published on Monday urged the EU to consider an unprecedented 30% across-the-board tariff on Chinese goods or a 30% depreciation of the euro against the renminbi to counter a surge of cheap imports.
The social media account Yuyuan Tantian said the report’s recommendations targeted only Chinese products and violated World Trade Organization rules.
“It is tantamount to declaring war on China in trade,” it said.
Shares in cognac-maker Remy Cointreau fell as much as 2.2% and spirits group Pernod Ricard dropped 1% after the news, before both reduced their losses.
NO ACTION YET, SAYS FRANCE
“Today, as you can see, the proposal has not been taken up by the government, which does not mean that it is unfounded,” French government spokesperson Maud Bregeon told journalists following Yuyuan Tantian’s comments.
French trade and finance ministries did not immediately respond to requests to comment.
China last year spared major cognac producers Pernod Ricard, LVMH and Remy Cointreau from hefty duties on EU brandy following an anti-dumping investigation that lasted more than a year and was widely viewed as retaliation for EU tariffs on China-made electric vehicles. France voted in favour of the tariffs.
Beijing has frequently said it is willing to engage in dialogue with France and the EU to address trade disputes.
“China has always kept its door open for communication, but is also well-prepared to meet all challenges,” Wednesday’s Yuyuan Tantian report added.
(Reporting by Shi Bu, Ethan Wang and Ryan Woo; Additional reporting by Thomas Leigh in Paris; Editing by Barbara Lewis and Mark Potter)
Comments