China to hit back at Brussels by 
launching European wine probe

The Ministry of Commerce’s announcement came in the same statement that expressed “resolute opposition” to punitive European tariffs on Chinese solar products.

The European duties are a blow to manufacturers struggling with excess production capacity and a price-cutting war.

Foreign ministry spokesman, Hong Lei did not respond when asked whether the wine investigation was retaliation for the solar duties. Concern about possible retaliation rose after Chinese Premier Li Keqiang warned last month that European anti-dumping action over solar panels would harm both sides.

The ministry said it would conduct an anti-subsidy and anti-dumping investigation of European wine but gave no details of how Beijing believed exports were being subsidised.

Most of China’s imports of European wine come from France, Spain, Italy and Germany, according to the Ministry of Commerce. That means that with the exception of Germany, any commercial impact would fall on countries whose governments supported the anti-dumping tariffs.

“We believe there is not dumping of European wines on the Chinese market,” said European Commission spokesman Roger Waite.

Dumping means selling a product abroad at a lower price than at home but some governments also take action if the price is deemed to be below production cost or unfair in some other way.

The president of the Federation of Wine and Spirits Exporters of France expressed alarm that the industry was caught in the dispute. “The use of our sector as leverage is particularly regrettable,” said Louis Fabrice Latour.