China Sets Steep Duties on European Brandy but Spares Biggest Producers

China said on Friday that it would impose steep duties on European brandy, mostly French Cognac, but softened the blow by sparing the largest producers after they agreed to change the prices they charged. The deal came at a delicate moment in trade relations between Europe and China as each accuses the other of dumping, of unfairly subsidizing industries and of imposing other barriers to trade.

The Chinese Ministry of Commerce announced duties of up to 34.9 percent on imported European brandy, the conclusion of a dumping investigation started last year that sent shudders through the industry, particularly among French Cognac brands with extensive sales in China.

Beijing imposed preliminary penalties against European brandy makers in October after the European Union voted to impose anti-subsidy tariffs on Chinese electric cars. France had led the push for the electric car tariffs, and almost all the brandy imports targeted by China come from France.

But after a flurry of diplomatic efforts, the biggest European Cognac producers — including the makers of Hennessy, Martell and Rémy Martin — were spared the duties by making a “minimum price commitment,” the Chinese Commerce Ministry said.