From Fortune Magazine:

China’s President, Xi Jinping, has launched a trade probe targeting luxury spirits producers in Europe in response to EU probes of low-cost Chinese electric vehicles, such as BYD.

France’s cognac producers expressed confidence that they are abiding by all regulations and are confident that the EU and China will resolve the dispute constructively.

China is apparently retaliating against the European Union by targeting its luxury goods sector for an anti-dumping probe. This followed the EU’s investigation into low-cost electric vehicles produced in China.

China’s investigation targets EU brandy vendors and comes amid tensions from an EU probe of Chinese electric vehicle makers. Cognac producers in France say they are confident of compliance with Chinese and international regulations.



Read more: China hits back at EU trade probe into Tesla-killer BYD—via brandy