China launches anti-dumping probe against EU wine

Concerns of a trade dispute between Europe and China have grown after Beijing said it was launching an anti-dumping probe against wine imported from the European Union.

The move comes after the EU announced that it will impose duties on imports of Chinese solar panels.

French representatives at the EU have lobbied for the introduction of the solar panel levy as the panels have been sold in the EU at a price which, it is claimed, is far below cost. This is possible largely because of subsidies paid by the Chinese government.

But this pressure from the French, who faced fierce opposition from German representatives, looks to have backfired slightly because the large quantities of French wine exported to China could now face extra levies. At present around 140 million litres of French wine, worth just over £500 million could be affected by a Chinese levy.

The EU’s trade commission has hinted that negotiations over the various levies is still possible, but the Chinese government has remained defiant, warning that there “would be no winners” in a trade war.

China imported 430 million litres of wine last year and more than two-thirds of that came from the EU.