China launches new investigation into Australian wine

By Jamie Salter

The Chinese Ministry of Commerce has escalated trade tensions with Australia as it launches an investigation into wine subsidies.

The countervailing investigation announced on Monday, August 31, comes less than two weeks after China announced an anti-dumping investigation on Australian wine.

China is Australia's largest wine export market with $1.1 billion exported in 2019-20.

Peak national body for the Australian wine industry Australian Grape and Wine said the nation was well placed to respond to this new investigation.

“Australian Grape and Wine will collaborate with wine businesses and the Federal Government to ensure we co-operate fully throughout the investigation process,” it said.

“China is an important market for Australian wine and our wine is in demand from Chinese consumers.

“The Australian industry welcomes the opportunity to build on these ties and work with the Chinese industry and government to further technical co-operation and develop lasting relationships.”

The final determination and decision on imposition of measures for the anti-dumping investigation is expected to be due on August 18, 2021.

China also recently imposed tariffs on Australian barley, suspended some beef imports and warned students and tourists it was not safe to travel to Australia because of allegations of racism.