China-Australia trade dispute extends to wine as Beijing targets cheap imports in anti-dumping probe
- China’s Ministry of Commerce confirms start of investigation following a complaint from the China Alcoholic Drinks Association on behalf of the domestic industry
- Penfolds’ Treasury Wine Estates and Yellow Tail’s Casella Wines named, as well as South Australia’s Accolade Wines and Victoria’s The Wine Company
Cheap Australian wine sold on Chinese e-commerce sites such as Taobao and JD.com has prompted the Chinese government to take action to protect its domestic industry by launching an anti-dumping probe into the imports.
China’s Ministry of Commerce (Mofcom) said on Tuesday that it would commence an anti-dumping investigation into wine sold in containers of two litres or less following a formal complaint from the China Alcoholic Drinks Association on behalf of the domestic industry last month.
Many of the private label wines – mostly unknown in Australia – have been specially produced to be sold by Chinese key opinion leaders, who also advertise the wines on their own e-commerce and social media channels, Chinese importers said.
An anti-dumping investigation looks at whether an imported product is being sold at an unfairly low price and can result in import duties being imposed to offset the price difference.
The China Alcoholic Drinks Association, which represents 122 members, said the growing number of low-priced Australian wines sold in China had “severely disrupted and inflicted a serious negative impact on the local market”.
