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China announced plans on Friday for a hearing on European brandy
imports, ramping up tension on the same day the European
Commission's provisional tariffs on Chinese-made electric
vehicles took effect.
"You can be a regional player with a very particular role in
globalisation, as in our case, and regardless find yourself
hostage to a number of conflicts that have nothing to do with
your activities," said Jean-Jacques Guiony, chief financial
officer of the luxury conglomerate.
"Every time there is a stray bullet in a trade conflict
somewhere […] there's a good chance that we end up having to
negotiate, having to explain that we are not dumping, that the
price of cognac is right," Guiony said.
He was speaking on a panel about trade at an economics
conference in the southern French city of Aix-en-Province.
LVMH brands produce leather goods, clothing, liquor and
champagne mostly in France and Italy and export around the
world.
Hennessy and other European cognac producers will attend a
hearing on China's anti-dumping probe of the industry in Beijing
on July 18, Reuters reported on Friday. French cognac accounts
for most of China's brandy imports.
China launched the investigation into brandy being "dumped", or
sold at artificially low prices, in January after a complaint by
the China Alcoholic Beverages Association on behalf of the
domestic brandy industry.
Guiony said trade wars have negative knock-on effects
economically and politically, but added that Europe must stand
together, saying China currently sees the region as weaker than
the United States.
"We must not be the sick man of globalisation."
(Reporting by Helen Reid; editing by Clelia Oziel)
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