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EU wine threatened by China’s retaliatory tariffs
China could be about to target European Union wine exports following EU anti-subsidy investigations into Chinese companies, according to sources.
The prediction, made over the weekend by a Chinese state-affiliated social media account Yuyuan Tantian (玉渊谭天) cited “informed sources” and warned that “China has ample countermeasures ready and will likely retaliate if the EU persists with its actions”.
According to reports, the move could jeopardise the US$800 million wine trade between the EU and China, which official data suggested is equal to almost 70% of China’s total wine imports last year.
Key EU wine exporters to China, including France, Italy, Spain, Germany, and Portugal are set to be affected, with France alone accounting for almost half of the wine exports.
In a statement reported by Bloomberg, a Chinese lawyer quoted by Yuyuan Tantian pointed out that the EU wine sectors’ dependence on the Chinese market. Meanwhile, the European Chamber of Commerce in China also echoed the sentiment, amplifying speculation and reiterated that the threat was “significant” and hinted that “European wine and dairy products may find themselves caught in the crossfire.”
In January, China launched an anti-subsidy investigation into EU brandy, which, according to reports, was being positioned as a threat to a US$1.56 billion spirits trade. The activity follows concerns back in 2014 when China threatened to probe EU wines during a dispute over solar panels.
In 2021, China imposed significant tariffs on Australian wines, shaking up the industry in a move which saw tariffs reaching up to 218%. Fortuitously, the tariffs were lifted by the end of March 2024.
China could be about to target European Union wine exports as a result of continued EU anti-subsidy investigations into Chinese companies, according to “informed sources”.
The prediction, made over the weekend by a Chinese state-affiliated social media account Yuyuan Tantian (玉渊谭天) cited “informed sources” and warned that “China has ample countermeasures ready and will likely retaliate if the EU persists with its actions”.
According to reports, the move could jeopardise the US$800 million wine trade between the EU and China, which official data suggested is equal to almost 70% of China’s total wine imports last year.
Key EU wine exporters to China, including France, Italy, Spain, Germany, and Portugal are set to be affected, with France alone accounting for almost half of the wine exports.
In a statement reported by Bloomberg, a Chinese lawyer quoted by Yuyuan Tantian pointed out that the EU wine sectors’ dependence on the Chinese market. Meanwhile, the European Chamber of Commerce in China also echoed the sentiment, amplifying speculation and reiterated that the threat was “significant” and hinted that “European wine and dairy products may find themselves caught in the crossfire.”
In January, China launched an anti-subsidy investigation into EU brandy, which, according to reports, was being positioned as a threat to a US$1.56 billion spirits trade. The activity follows concerns back in 2014 when China threatened to probe EU wines during a dispute over solar panels.
In 2021, China imposed significant tariffs on Australian wines, shaking up the industry in a move which saw tariffs reaching up to 218%. Fortuitously, the tariffs were lifted by the end of March 2024.