China has launched an anti-dumping and anti-subsidy investigation into wines imported from the European Union, Xinhua reports.
The decision follows a request from the China Alcoholic Drinks Association, which complained that EU countries have been selling wine to China at below-market prices. China’s Commerce Ministry will now investigate whether European winemakers are receiving improper subsidies in exporting their products to China.
The European Commission has denied allegations and expressed willingness to cooperate with China on its inspections. It also said that it does not believe the probe is directly related to the provisional tariff that the EC has imposed on Chinese solar products.
Data from China’s Customs Administration shows two out of every 10 bottles sold in China come from Europe.