Alert: Xi and Macron have 383 days to save French cognac in China
We are closely following the ongoing negotiations between France and China regarding the future of cognac. President Emmanuel Macron recently expressed his desire to find a favorable solution by the beginning of 2025. This situation reminds us of the crucial importance of international trade in the wine world, an area that we know well as passionate sommeliers.
The economic stakes of French cognac
Cognac is a major pillar of the French economy, particularly in the Charente region. According to the latest data, the sector generates 72,500 jobs in France , a figure that highlights the importance of this sector for local employment. We were able to see during our travels in the region that many families depend directly or indirectly on this activity.
Export plays a major role in the cognac industry:
- 98% of sales are for export
- Export turnover reaches 3.35 billion euros
- The United States is the leading market with 38% of shipments
- China comes in second, accounting for 25% of exports.
These figures illustrate the dependence of cognac on international markets , particularly that of China. This is why recent trade tensions with Beijing are causing so much concern in the sector.
The diplomatic crisis and its repercussions
Last week, we learned that China had decided to impose “temporary anti-dumping measures” on brandy imported from the European Union, including cognac. This decision follows a similar announcement the previous month. As keen observers of the global wine market, we understand that these measures are seen as a response to the proceedings initiated by Brussels over Chinese subsidies for electric cars.
This situation is reminiscent of other diplomatic crises that have impacted the wine trade, such as the Russian embargo on Georgian wines in 2006. History teaches us that these tensions can have lasting consequences on trade and the reputation of the products concerned.
Current diplomatic initiatives
Faced with this worrying situation, President Emmanuel Macron has taken the initiative to discuss directly with his Chinese counterpart, Xi Jinping. At the recent G20 summit in Rio de Janeiro, Macron told reporters:
"We decided with the Chinese president (...) to carry out the work technically, with a lot of transparency"
This approach demonstrates the importance given to this issue at the highest level of the State. As wine and spirits enthusiasts, we welcome this initiative which could help preserve the unique know-how of cognac producers.
To put these diplomatic efforts into practice, Prime Minister Michel Barnier will travel to China in the first quarter of next year . This visit will be crucial to address the issue with the Chinese authorities and try to find common ground.
Prospects and challenges for the future of cognac
The objective displayed by President Macron is clear: to find a favorable outcome by the beginning of 2025. This relatively short deadline underlines the urgency of the situation for the cognac industry. Here is an overview of the main issues to consider:
| Challenges | Potential impacts |
|---|---|
| Maintaining exports to China | Preservation of 25% of the export market |
| Protection of jobs in France | Stability for 72,500 direct and indirect jobs |
| Preservation of know-how | Continuity of the centuries-old tradition of cognac |
| Market diversification | Reducing dependence on certain countries |
As wine professionals who have travelled to vineyards around the world, we are convinced that Cognac has all the assets to overcome this crisis. Its reputation for excellence and its rich history should allow it to maintain its place of choice on the international spirits scene.
We will remain attentive to developments in this situation, aware that the future of French cognac is partly at stake in these diplomatic negotiations. The resolution of this trade dispute could open the way to a new era of cooperation between France and China in the field of prestige spirits.
