The vast majority of the countermeasures list released by China's Ministry of Commerce are France companies, and "capture the thief first and capture the king", so it should be done. President Macron of France wants to talk to China while fighting, China has already made a move, see how he picks up?
China announced the list of countermeasures
On the morning of October 8, China's Ministry of Commerce issued a document pointing out that it was preliminarily determined that there was dumping of import-related brandy (wine) originating in the European Union, which harmed the interests of relevant industries in the mainland.
In accordance with the relevant provisions of the "Anti-dumping Regulations," China has decided to implement temporary anti-dumping measures against the relevant companies from October 11.
This measure requires companies on the list to pay a deposit to China Customs in proportion to the situation.
As you can see from the list, the margin ratio of these companies ranges from 30.6% to 39%.
According to the calculation formula disclosed by the Ministry of Commerce of China, the amount of the deposit = (dutiable value approved by the customs × the rate of collection of the deposit) × (1 + VAT rate at the import link) ÷ (1 - the proportional tax rate of the consumption tax at the import link).
That is to say, if an EU company exports a bottle of wine to China at a unit price of 100 euros, they will have to pay a deposit of more than 30 euros.
This is basically equivalent to sentencing EU companies on the list to death in the Chinese market.
Although this security deposit, it does not seem to be a penalty.
However, if this money is to be returned, there is only one possibility, that is, the relevant enterprises will completely withdraw from the Chinese market, and then the deposit can be recovered.
This trick can be described as ruthless, so let these EU companies entangle.
Do you continue to do business in China with a high margin, or do you want to withdraw from the Chinese market?
France is targeted?
The list is divided into three categories, one is "sampled (investigated) companies", the second is "other companies cooperating with the survey", and the third is other EU companies.
Although in the announcement of the Ministry of Commerce, it has always been emphasized that brandy imported from the European Union.
But in reality, it is France that is most affected.
France's brandy sales are far ahead in the world and in China.
The sales amount is not too high, only hundreds of millions.
However, the scale of the France industrial chain driven behind it is very large.
It should also be noted that although the amount of wine produced is not large, the "revolutionary tradition" of the France peasants is very good.
Driving a tractor into the city of Paris to protest was a routine practice for France peasants.
"Capture the thief and capture the king first"
In fact, China's Ministry of Commerce is very targeted against EU brandy.
Because on the issue of discriminatory tariffs on Chinese electric vehicles in the EU, France is the most resolute country.
It is precisely because of France's strong push that the EU officially adopted the final ruling two days ago.
France and Germany are the two giants within the EU.
Germany has always sided with China on this issue.
Therefore, the voting results also showed that 10 countries in the EU, including France, were in favor and 5 countries, including Germany, were against.
As many as 12 countries abstained, and it is conceivable that if France does not go all out.
The EU's electric vehicle policy towards China has long been stillborn.
As the saying goes, "capture the thief and capture the king first", the first shot of our counterattack has been fired, and France has been shot.
The EU policy is still 1 month away before it comes into effect.
Next, we may introduce a large number of countermeasures.
Since France and these countries do not abide by the rules of the game, it is not to blame China for flipping the table.