PRESS RELEASE
2025.03.31
Foreign minister’s visit to China: signs of openness that do not end the disastrous effects of provisional taxes
Following the visit of Mr. Jean-Noël Barrot, Minister of Foreign Affairs, to China on March 27 and 28, we have been informed of two developments regarding the anti-dumping investigation launched on January 5, 2024, by the Chinese authorities against Cognac and Armagnac. As a reminder, under this investigation, taxes that jeopardize our presence in our second-largest market have been imposed since last October.
- The announcement by the Chinese authorities that definitive duties will not be imposed on April 5, as could have been possible under the procedural rules in place. This potentially opens the door to another extension of the investigation until the deadline of July 5, 2025.
- The mention of the possibility of selling the Cognac currently stored in Chinese ports through the duty-free channel.
The tone of these two announcements is perceived positively by Cognac and Armagnac professionals as it confirms, following France’s requests, the Chinese authorities’ willingness to engage in dialogue.
However, in substance, these developments do not alter the situation for Cognac exporters, who have been subjected to provisional taxes in China since last October. For Cognac alone, these taxes have effectively excluded them from their second-largest market, resulting in a 72% drop in shipments, particularly for the month of February 2025 alone.
We understand that following this visit, which we commend, discussions will continue at a technical level to clarify the scope of the announcements and how they will be implemented. We await the clarifications that will emerge. It is crucial that this initial sign of openness materializes through the formal extension of the investigation by three months, until July 5, 2025. This additional period must be used to find a diplomatic solution to remove our industry from this economic dispute, to which it is entirely unrelated, and which currently threatens to plunge it into a devastating and historic economic and social crisis.
The high-level Franco-Chinese dialogue scheduled for May 15, 2025, must in any case be dedicated to this progress and confirm the visit of our Prime Minister to China to finalize the anticipated agreement that will bring an end to this unjust and unfounded procedure.
