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Europe denies wine product subsidies to China


17:35, June 06, 2013

Following Europe’s provisional anti-dumping duties on Chinese solar panel makers, China also launched anti-dumping and anti-subsidy investigations into European wine. Although many analysts believe trade tensions are mounting between China and Europe, the European Commission believes the two sides are still far away from a trade war.

On Wednesday China’s Commerce Ministry announced it will launch an investigation into whether European winemakers are receiving improper subsidies in exporting their products to China. The European Commission denied such allegations and expressed willingness to cooperate with China on its inspections. If evidence of dumping is found, France, Italy and Spain, are three major wine-making countries that will be impacted.

The European Commission says it doesn’t believe the probe is in direct relation with the provisional tariff imposed by Europe on Chinese solar products. It also doesn’t believe the two sides are on the verge of a tit-for-tat trade war.

China’s Commerce Ministry announced it’s opening the investigation into European wine imports in response to receiving complaints from domestic wine makers last year. China’s wine makers allege that unfair government subsidies from Europe is damaging China’s domestic wine industry.

Wine sales from Europe to China quintupled in the past five years, from 140 million euros to current sales of 760 million euros.

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