BEIJING, July 5 (Reuters) -
China announced the next step in its anti-dumping
investigation into European brandy imports on Friday, ramping up
tensions on the same day the
European Commission's provisional tariffs
on Chinese-made electric vehicles take effect.
While a Commerce Ministry spokesperson stressed at a
news conference on
Thursday
that Brussels and Beijing should stay at the negotiating
table ahead of the bloc confirming tariffs of up to 37.6% on
Chinese-made EVs, the prospect of retaliation was kept alive by
a reference to another probe into
EU pork imports
.
The Commerce Ministry said on Friday it would hold a
hearing on July 18 to discuss an ongoing investigation into
claims that European brandy producers are selling into China at
below market rates.
China has repeatedly called on the EU to cancel its EV
tariffs, expressing a willingness to negotiate. It has said it
does not want to be embroiled in another tariff war - with U.S.
tariffs on its goods continuing to sting - but that it would
take all steps to protect Chinese firms.
There is a four-month window during which the EV tariffs
are provisional and intensive talks are expected to continue
between the two sides as Beijing threatens wide-ranging
retaliation.
Since January, Beijing has opened tit-for-tat
investigations into European brandy and pork imports, striking
at predominantly French, Spanish, Dutch and Danish commercial
interests as the 27-strong bloc wavers over whether to back the
Commission in an upcoming advisory vote on the EV tariffs.
The state-backed Global Times newspaper has also
reported that officials are considering opening an anti-subsidy
probe into European dairy imports and imposing tariffs on
large-engined petrol cars manufactured in Europe.
Authorities have previously dropped hints about what
they might do next through state media commentaries and
interviews with industry figures.
Analysts say China chose brandy and pork to persuade
France and Spain, who have been among the firmest backers of EU
curbs, to join the likes of Germany, whose automakers made a
third of their sales last year in China and
reportedly
wants to lobby the Commission to stop the tariffs.
After the bloc confirmed the provisional tariffs would
take effect from Friday, the Global Times published an article
calling on the EU to "show sincerity" in negotiations over the
EV curbs and a separate editorial urging Brussels to consider
European automakers' opposition to the curbs.
The Global Times also called attention to American EV
maker Tesla's manufacturing plant in Shanghai,
broadening its call to protest against the tariffs.
Chinese EV makers' Hong Kong-listed shares
fell on Friday
, led by Geely Automobile ( GELYF ), which dropped 4.1% to
HK$8.34, its lowest since March 7.
Geely Automobile's ( GELYF ) unlisted parent, Geely, faces
additional duties of 19.9%, on top of the EU's standard 10% duty
on car imports.
Chinese brands MG and NIO suggested on Thursday they
might raise prices in Europe later this year, in response to the
curbs.