China is trying to smooth things over with French cognac giants like Hennessy and Rémy Martin by offering them a hefty tax refund—but there’s a catch. To get the money, they’ll need to play ball with Beijing’s ongoing investigation into EU brandy imports, which could mean agreeing to certain conditions like minimum pricing. It’s a classic carrot-and-stick move amid rising trade tensions.

Editor’s Note: This isn’t just about booze—it’s a high-stakes trade chess match. China’s probe into EU brandy looks like retaliation for Europe’s crackdown on Chinese electric vehicles. By dangling a tax refund, Beijing’s giving French producers a reason to cooperate (or at least stay quiet), which could weaken EU unity in the trade fight. For consumers, it might mean stable cognac prices—or, if things go sideways, pricier pours down the line.