Customs duties. There was a warning, there is a decision of China. Things are tense in Poland

China is currently the largest producer of electric cars in the world. Among other things, this is because the state provides significant support to this industry. This is not only about subsidies and tax breaks, but also about easier access to land. All this meant that the European Union – wanting to protect the domestic industry against competition “on steroids” – from November 1, it will be subject to Chinese electric cars to 45% taxes.

China responded. From Friday, October 11, importers of brandy from the European Union must “pay security deposits to customs authorities”. This is not surprising. Beijing has been announcing tariffs on luxury alcohol if Brussels hits China’s auto industry for months.

China’s retaliation is a blow largely to the French, who are responsible for 99 percent. brandy exports from the EU. That’s why in May in Paris, French President Emmanuel Macron presented President Xi Jinping with cognac. The media called it cognac diplomacy. However, it was not successful.

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We asked, among others, about the possible impact of Chinese retaliatory tariffs on Polish industry. Polish Spirits Industry Employers’ Association, whose ranks include, for example, local branches of Stock and Moët Hennessy companies. Alcohol makers do not expect Poland to back down, but they fear that tensions between Brussels and Beijing will increase.

“As for our brandy exports, it should be noted that they are marginal, and unfortunately China is not a significant market for spirits (in any category). Therefore, the introduction of tariffs on brandy exported to China will not directly affect the activities of Polish spirits industry companies,” say representatives of the association. However, they note that it will create a precedent.

We therefore believe that Member States should oppose such restrictions on access to third-country markets, because if today European brandy is subject to customs duties, tomorrow it may apply to Polish vodka or another of our export products – points out Aneta Wasilewska from the Association of Employers of the Polish Spirit Industry.

However, the National Secretariat of Food Industry and Agriculture NSZZ “Solidarność”, which also has trade unions in the alcohol industry, does not see any reason for panic regarding China’s decision. He doesn’t get any alarming signs of staffing problems.

However, the dairy industry is warning against an increase in the customs war. A few months ago, China started proceedings to investigate, among other things, subsidies from the EU for this sector. Poland, let us emphasize right away, has not yet come under the microscope of Chinese officials. But our neighbors – the Czechs – were not so lucky.

Beijing is investigating support programs for the dairy industry in Ireland, Austria, Belgium, Italy, Croatia, Finland, Romania and the Czech Republic. As Agnieszka Maliszewska, director of the office of the Polish Dairy Chamber, said in June in an interview with portalspozywczy.pl, The Poles cannot ignore China’s investigation.

We fear that Chinese importers may ban EU imports and our companies will be hit hard. Some restrictions on trade with China could also increase the global supply of dairy products. Other countries look for export diversification, which could have a negative impact on prices, said Maliszewska.

Marcin Hydzik, president of the Association of Polish Milk Processors and chairman of the Milk Agreement, confirmed that EU support programs for the industry are in line with the principles of the World Trade Organization. He considered Beijing’s start of proceedings a “warning scene”, but reassured the industry.

– Both the EU and Polish dairy industries have already experienced so many crises, including: the closure of the Russian market, the pandemic, market collapse, butter and powder peaks, but ‘ nevertheless they show remarkable resistance against these events every time. This time too, they will surely do very well – he said after China started an investigation into EU milk products.

The European market is very important for Beijing, which in 2023 received goods from China worth EUR 516 billion. A high-ranking diplomat from one of the European Union countries comments unofficially (and anonymously) in “Rzeczpospolita” that revenge is not in the interest of the Chinese.

“Therefore, it is not profitable for them to go to a trade war with Europe, especially since we treat them much more leniently than other trading partners. The US, along with Canada and Australia, have imposed 100% tariffs on Chinese electric cars“- we read every day.

– We can expect retaliation from Beijing, but we should also remember that the Chinese authorities do not want to increase the already strained relationship with the EU – as an important market for various types of Chinese products – explained Alicja Bachulska, an expert at the idea of ​​a tank, in an interview with “Rz”.

Jacek Losik, money.pl journalist