China launches anti-dumping probe into EU wine imports
Tit-for-tat trade war looms as Beijing launches anti-dumping probe into wine imports after Brussels imposes tariffs on 'subsidised' panels
The risk of a tit-for-tat trade war between China and the European Union has escalated after Beijing launched an anti-dumping probe into European wine imports worth an estimated US$1.7 billion.
The investigation was announced in a statement from the Ministry of Commerce responding to news that the EU had decided to slap tariffs on imports of Chinese solar panels that Brussels says are being unfairly subsidised by Beijing.
The statement, quoting ministry spokesman Shen Danyang , called on the EU to show "more sincerity and flexibility" in resolving the solar dispute.
Ding Chun , an expert in European affairs at Fudan University, told the it was clear that trade tensions had increased, although a full-scale trade war could still be averted.
"The actions taken by both sides so far are still rational," Ding said. "There is still room for negotiation."
China's wine investigation came after the EU said on Tuesday it would impose provisional anti-dumping duties of 11.8 per cent on photovoltaic products from mainland manufacturers from today. "We have noted the quick rise in wine imports from the EU in recent years, and we will handle the investigation in accordance with the law," the ministry statement said.
