China Threatens French Tariffs Over EU Trade

China has threatened to launch investigations into French wines and spirits or impose reciprocal tariffs on European Union products if France pushes the European Union to implement import duties on Chinese goods. This threat comes after the French Government issued a report recommending a 30% tariff on Chinese goods or a 30% depreciation of the euro against the renminbi to counter cheap imports. A social media account linked to Chinese state broadcaster CCTV explicitly stated that French products would be targeted in retaliation. Shares in Rémy Cointreau and Pernod Ricard fell following the news. China has previously imposed duties on French Cognac producers, which were seen as retaliation for EU tariffs on China-made Electric vehicle. China maintains it is open to communication but is also prepared for challenges.