The European Union said Tuesday it will launch a challenge at the World Trade Organization (WTO) against China's decision to put anti-dumping measures on brandy imported from the bloc.

"The European Commission will challenge, at the WTO, the announced imposition of provisional anti-dumping measures by China on imports of brandy from the EU," the European Commission's trade spokesperson Olof Gill said in a statement.

"We believe that these measures are unfounded, and we are determined to defend EU industry against the abuse of trade defense instruments," Gill added.

The Chinese Commerce Ministry released a list showing the rates each firm would expect to pay, ranging from 30.6% for cognac house Martell to 39% for Jas Hennessy and 38.1% for Remy Martin.

China's tit-for-tat move after EU tariffs on electric vehicles

Beijing's decision appeared to be a retaliatory move after the EU slapped hefty additional import tariffs on Chinese-made electric vehicles.

Further complicating an already strained trade relationship between Beijing and Brussels, last week the EU approved major tariffs on Chinese electric vehicles, prompting German fears of a trade war. As the EU's largest automobile manufacturer, according to Statista, with approximately 4.1 million vehicles produced, Germany's concerns are particularly heightened.

EU economy chief Paolo Gentiloni defended the stance as "reasonable" and said the bloc was "never worried" over a possible response from Beijing.

"We had a serious investigation," Gentiloni told reporters in Luxembourg, referring to last year's anti-subsidy probe which looked into Chinese electric cars.

China moves to ease economic gloom

China's economy has been slowing in recent years, affected by decreasing consumption, local government debt, and a major housing crisis.

Despite this, earlier on Tuesday, China's top economic planner, China's National Development and Reform Commission, expressed confidence it could meet its development goals for 2024 without another stimulus package, despite a sluggish economy. 

jsi/wmr (AFP, Reuters)