China Cognac Probe Retaliation For EU Car Tariffs: LVMH

China's anti-dumping investigation into Europe's cognac industry is a retaliatory measure against European Union (EU) tariffs on Chinese electric vehicles (EVs), LVMH's finance chief said, Helen Reid reported for Reuters.

French cognac accounts for most of China's brandy imports. I Photo: Hennessy Facebook

China announced plans for a hearing on European brandy imports on Friday, coinciding with the European Commission's provisional tariffs on Chinese-made electric vehicles.

"Despite being a regional player with a specific role in globalization, we find ourselves caught in trade conflicts unrelated to our activities," said Jean-Jacques Guiony, LVMH's chief financial officer.

He noted the frequent need to defend the cognac industry's pricing against dumping accusations.

LVMH brands produce luxury goods, including leather goods, clothing, liquor, and champagne, primarily in France and Italy for global export. French cognac accounts for most of China's brandy imports.

The hearing on China's anti-dumping probe of the industry is scheduled for July 18 in Beijing.

Guiony stressed the negative economic and political impacts of trade wars and urged Europe to stand united, noting China's perception of the region as weaker than the US. "We must not be the sick man of globalization," he added.