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Sunday 5 July 2015

China’s anti-dumping probe likely to have little impact

3rd July, 2013 by Shiying Huang

China’s anti-dumping probe is unlikely to deter Chinese consumers and domestic producers from buying European wines.

Flag of the People's Republic of ChinaOn 1 July, the Chinese Ministry of Commerce officially launched its anti-dumping and anti-subsidy investigations against EU wine imports, announcing that that they will be assessing the ‘damage’ that these practices have caused to the Chinese wine industry between 2009-2012.

Acccording to Guangzhou Daily, after the anti-dumping investigation has been filed, it will be a period of six months to a year before the preliminary ruling is decided.

The China Alcoholic Drinks Industry Association, who had submitted the anti-dumping and anti-subsidy applications on behalf of the domestic wine industry, is firmly supportive of the investigation.

They believe that it is crucial to securing the interests of the domestic industry, as well as protecting the rights of local producers.

The association asserts that the China’s wine industry has always existed within a market environment that had ‘healthy and orderly competition’.

However, in recent years, EU wine import volumes has seen significant increases of 67.61% per year between 2008-2011, and market shares that surged from 4.94% in 2008 to 14.32% in 2011.

This has been of great impact and threat to the domestic Chinese market, says the Association.

However, some local wine firms have expressed doubts towards the real benefits of the investigation, believing that the investigation would not deter wine consumers in China from purchasing EU wines.

One importer commented that the majority of vines planted in China are suited only for table-grape production, and wine grapes are short in supply.

He remarked that many local producers simply purchase their base wines from within the EU and then bottle it as their own product.

Increasing the tax on EU wine imports would definitely increase the cost burdens on them.

 

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