China has announced that it will extend the anti-dumping probe on EU brandy imports by three months.

The announcement came just days after France's top diplomat secured a reprieve on the imposition of additional duties, AFP reports.

A statement from the Ministry of Commerce in Beijing said that "given the complexity of this case" the probe had been extended until July 5.

European brandy exports to China have been subject to tariffs since October after the EU imposed duties of up to 35.3 percent on Chinese electric cars over allegations of unfair competition.

The measure is painful for French cognac producers, which rely on exports for 98% of their sales. Cognac makes up the bulk of EU brandy exports to China.

In February, the French cognac industry said it was losing €50 million a month since anti-dumping duties were imposed by China and appealed for help from the government.

On 28 March, French Foreign Minister Jean-Noel Barrot announced that China had agreed to postpone for three months the possible permanent application of additional duties on French cognac.

During his visit to China, Barot said the move was a "first step towards resolving this dispute." | BGNES