17 Jun 2013
In early June 2013, the European Commission imposed a provisional anti-dumping tariff of 11.8% on imported Chinese solar panels. In the absent of negotiations on Beijing’s part, the commission will raise the levy to 47.6% on August 6.
In reply, Beijing launched an anti-dumping probe on wine imported from E.U countries, creating the risk of a full-blown trade war. The investigation is estimated to effect US$1.7 billion of European wine imports.
China’s wine imports have increased by 8.9% to 430 million litres over the last year, of which 67% were from the EU (an increase of 5.8% from 2011). Imports from France alone amounted to 170 million litres last year, an increase of 11.3% from 2011.
When asked to provide a rationale to the probing, the Chinese Ministry of Commerce said, “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”.
Hao Changsheng, a sales representative for a wine retailer in China, says, “we would inevitably need to increase retail prices if the levies were imposed”, proving that the main victim of this trade war will be the end consumer.
Read the full solar panels & wine anti-dumping articles.