France takes diplomatic route on Cognac issue with China

In the wake of a trade dispute between China and the European Union, French President Emmanuel Macron announced that Prime Minister François Bayrou will visit China to address a trade dispute affecting cognac exports.

The conflict arose after the EU imposed duties on Chinese EVs, prompting Beijing to retaliate with tariffs and deposits of up to 40 percent on EU brandy, impacting companies like Hennessy, Pernod Ricard, and Rémy Cointreau.

Despite challenges, Pernod Ricard China in December 2024 announced plans to raise the price of its Martell cognac, effective February 1, 2025.