China drags wine into EU trade war

China’s wine industry has called on the government to investigate whether EU subsidies are putting its domestic products at a competitive disadvantage.

The China Alcoholic Drinks Industry, which represents the country’s wineries, is concerned that European winemakers are being subsidised to flood China with poor quality wines.

In an interview with China Daily, Wang Zuming, secretary general of the CADA’s wine sub-branch, said: “We have noticed a clear intention to sell European wines in the Chinese market at below cost price.”

The complaint is being viewed as a reaction to moves by the EU to launch a similar probe into China’s solar panel exports. Rival firms in Europe, China’s largest market for solar panels, have complained that the country is selling these products at a loss. The US began its own investigation against China’s solar industry nine months ago.

In addition to this wider trade friction, China’s wineries, which currently account for 75% of the country’s wine market, are facing increased pressures from declining revenues and quality concerns.

As reported in the drinks business last week, recent figures from Chinese customs authorities show that the country imported 200 million litres of wine in the first six months of 2012, a rise of 12% on 2011. Analysts have predicted that these imported brands could grow to represent 50% of China’s wine market.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Account Manager - Manchester

Black Fire Tequila
Manchester, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London

Sales Administrator

Les Caves de Pyrène
Guildford, UK

General Manager

3Cs Cider
UK

Buyer

BrandAlley UK LTD
London EC2A

Liquid Production Assistant

Atom Group
Tonbridge, UK

Brand Manager

Hallgarten Druitt
Luton, UK

Brand Manager

Kilchoman Distillery Co Ltd
Edinburgh, UK

Wine Bar Supervisor

Henny's
London, UK

Partner Manager - On-trade - North West

Maverick Drinks
Manchester, UK

Pays d'Oc Tasting

London,United Kingdom
28th Jun 2018

CHILE: From The Very Top To The Downright Hot

Manchester,United Kingdom
2nd Jul 2018

CHILE: From The Very Top To The Downright Hot

Edinburgh,United Kingdom
3rd Jul 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more