Alert: Xi and Macron have 383 days to save French cognac in China

We are closely following the ongoing negotiations between France and China over the future of cognac. President Emmanuel Macron recently expressed his determination to find a favourable solution by the start of 2025. This situation reminds us how crucial international trade is to the wine world, an area 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 figures, the industry supports 72,500 jobs in France, a figure that underlines how important this sector is for local employment. On our travels in the region, we have seen that many families depend directly or indirectly on this activity.

Exports play a dominant role in the cognac industry:

• 98% of sales go to export
• Export turnover reaches €3.35 billion
• The United States is the leading market, with 38% of shipments
• China comes second, accounting for 25% of exports

These figures illustrate cognac’s dependence on international markets, particularly China. That is why the recent trade tensions with Beijing are causing so much concern across the industry.

The diplomatic crisis and its repercussions

Last week, we learnt that China had decided to impose “temporary anti-dumping measures” on brandies 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 retaliation for the proceedings launched by Brussels over Chinese subsidies for electric cars.

This situation is reminiscent of other diplomatic crises that have affected the wine trade, such as the Russian embargo on Georgian wines in 2006. History teaches us that such tensions can have lasting consequences for trade and for the reputation of the products concerned.

The diplomatic initiatives under way

Faced with this worrying situation, President Emmanuel Macron took the initiative of talking directly with his Chinese counterpart, Xi Jinping. At the recent G20 summit in Rio de Janeiro, Macron told journalists:

“We have decided with the Chinese president (...) to carry out the work at a technical level, with a great deal of transparency”

This approach shows how much importance is being given to the issue at the highest level of government. As lovers of wines and spirits, we welcome this initiative, which could help preserve the unique expertise of cognac producers.

To follow through on these diplomatic efforts, Prime Minister Michel Barnier will travel to China in the first quarter of next year. This visit will be crucial for raising the subject with the Chinese authorities and trying to find common ground.

Outlook and stakes for the future of cognac

The goal set out by President Macron is clear: find a favourable outcome by early 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:

As wine professionals who have travelled the vineyards of the whole world, we are convinced that cognac has everything it needs to weather this crisis. Its reputation for excellence and its rich history should allow it to keep its prime position on the international spirits scene.

We will keep a close eye on how this situation develops, aware that the future of French cognac partly depends on these diplomatic negotiations. Resolving this trade dispute could pave the way for a new era of cooperation between France and China in the field of prestige spirits.