Creation: Political Economy Group of the Proletarian Liberation Struggle Association
ㅤㅤAfter China’s new energy electric vehicles were sanctioned by the European Union and subjected to high tariffs, China also imposed high tariffs on imported bottled brandy from the EU. The Ministry of Commerce announced the implementation of so-called anti-dumping measures on bottled brandy imported from the EU. The scope of this measure includes spirits made from distilled wine originating in the EU and packaged in containers of less than 200 liters. According to the Ministry’s announcement, China will impose deposits ranging from 30.6% to 39% on EU brandy brands such as Martell, Hennessy, and Rémy Martin. Starting from November 15, all companies are required to provide corresponding deposits or guarantees to China. Since the end of the pandemic, sales of Cognac have decreased, and recently, sales in the Chinese and American markets have further declined, putting additional pressure on Cognac sales. In 2023, French brandy exports plummeted by nearly 15%, falling to 3.35 billion euros. Nevertheless, the EU remains the world’s largest producer of brandy, with almost 90.8% of brandy exports to China coming from France, and brands like Ballantine’s, Rémy Martin, and Napoleon Cognac earning considerable profits in the Asian market.
ㅤㅤFaced with China’s sanctions, the French bourgeoisie is unwilling to lose this lucrative market. They immediately took measures to circumvent restrictions, with each Cognac producer seeking “ways out.” The French Cognac manufacturer Hennessy plans to export Cognac in barrels to China, transporting the spirits along with materials including glassware, labels, corks, and boxes to China, where bottling will be completed. Hennessy plans to start implementing this plan on December 15. Initially, they will send 1,000 liters of Cognac to China to test product stability, and if successful, they will transfer the entire VSOP bottling line to China. This production line can process 600,000 boxes of Cognac annually, which is the expected total sales in China by 2025.
ㅤㅤThis move by the French bourgeoisie directly sacrifices the interests of their own working class. The Cognac region in France comprises 4,400 farms, 1,200 distillers, and 270 traders, directly employing 15,000 people. This covert tactic by the French bourgeoisie will, in the future, lead to massive unemployment either directly or indirectly. Moreover, they have established factories in China, employing relatively low-cost Chinese labor, significantly reducing production costs, which allows them to engage in price wars with China in trade by leveraging this advantage.
ㅤㅤHowever, workers are also unwilling to passively accept bourgeois manipulation. In response to the plan of Cognac capitalists to shut down local factories and cause mass unemployment, on November 19 local time, about 500-600 workers in the Charente region of Cognac, France, initiated a strike protest against Hennessy’s barrel export plan. A large number of workers gathered outside Hennessy’s headquarters in Cognac, roughly half of the factory’s total workforce. Additionally, workers from other major Cognac producers, including Martell, Rémy Martin, and Napoleon Cognac, also joined the strike.
ㅤㅤImperialism is willing to wage trade wars, raising tariffs continuously to compete for markets. The trade wars initiated by China and France over new energy vehicles, brandy, and other goods are just the beginning. Similarly, the workers’ strike struggles are only just starting. Hennessy’s management plans to negotiate with workers next week, bringing the class struggle to the bargaining table to quell the unrest. However, the bargaining table cannot satisfy the workers’ hunger, and the momentum of their struggle will only grow stronger.
中欧贸易战殃及干邑白兰地，轩尼诗工厂工人罢工 - 纽约时报中文网 在华装瓶以规避关税？法国轩尼诗还没出招，就“内乱”了-观察者网
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The French bourgeoisie is too detestable; they not only evade so-called anti-dumping measures but also lower costs to exploit Chinese workers harshly, leading to unemployment among French workers. The interests of the working classes of France and China are aligned; both are cruelly oppressed by the bourgeoisie, and they must unite!
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