China Declares War On French Wine

[Sancho Panza]

http://globaleconomicanalysis.blogspot.com/2013/07/china-declares-war-on-french-wine.html

' The Chinese government has decided to launch an investigation into the European wine sector with the later intention to apply a punitive tax if necessary, as China authorities accuse wine producers in the European Union (EU) of unfair trade tactics such as dumping and subsidies.

The temporary imposition of a tariff on Chinese solar panels by the EU started a trade war whose greatest victim is wine.

"This is a thorough research on European wines for export, in all formats, is bottled in barrels or in bulk," say sources familiar with the process, which warned that the wineries are going to have to face a complicated process and urgent administrative that could derail Asian exports. And that is bad news for an industry whose sales in their home markets is already complicated by the financial crisis.

Chinese authorities have given wine exporters 20 days to register as companies subject to investigation, and if they are not registered before July 21, China will automatically apply a punitive percentage.

No One Wins a Trade War

Should the EU be stupid enough to press the matter further, China would likely respond in kind.

For example China could threaten to place tariffs on cars from Germany or better yet Airbus planes (manufactured in a consortium of countries including France).

Strong retaliation might drive home the point, but don't count on it. Never underestimate the stupidity of EU bureaucrats who think they can impose their wishes on the market.'

Trade war.Oh la la.....

[Venger]

For example China could threaten to place tariffs on cars from Germany or better yet Airbus planes (manufactured in a consortium of countries including France).

It was supposedly a considered and targeted move by China.

Given Germany and UK were not the main and loudest opponents to China, and it was more the Southern countries of the UK wanting higher levies on things like Chinese imported solar panels, the Chinese action affect the protesting Southern EU wine-producing countries more.

[The Eagle]

Given Germany and UK were not the main and loudest opponents to China, and it was more the Southern countries of the UK wanting higher levies on things like Chinese imported solar panels,

Actually that's not true, it was Germany who was most concerned about Chinese imported solar panels as Germany has a few solar panel manufacturers that are in financial difficulties due to being undercut by Chinese manufacturers.

I guess the Chinese want to affect the French<>German relations with this move.

[TheBigBean]

Actually that's not true, it was Germany who was most concerned about Chinese imported solar panels as Germany has a few solar panel manufacturers that are in financial difficulties due to being undercut by Chinese manufacturers.

I guess the Chinese want to affect the French<>German relations with this move.

Germany was originally concerned, but having had a chat with the Chinese, decided that import duties on Chinese panels was the wrong approach.

[Venger]

Actually that's not true, it was Germany who was most concerned about Chinese imported solar panels as Germany has a few solar panel manufacturers that are in financial difficulties due to being undercut by Chinese manufacturers.

I guess the Chinese want to affect the French<>German relations with this move.

Ok, I was blagging it from memory of a 4 week old article.

Still a targeted move, and you may be onto something with China having deliberately spared Germany with their counter-move, given they don't have a substantial wine export industry. Or maybe they don't want to annoy Germany, but still want to make a stand against the proposed duties.

China hits back at EU wine over solar panel duties

* China launches anti-dumping and anti-subsidy probe of EU wine

* Move targets south European supporters of solar panel duties

* Germany calls for negotiated settlement

* Thirst for EU wines soars among Chinese middle class

By Terril Yue Jones

BEIJING, June 5 (Reuters) - China took aim on Wednesday at exports of the European wines favoured by its growing middle class, responding to an EU move to impose anti-dumping duties on Chinese solar panels as tensions rise between two of the world's biggest trade partners.

In a step targeting southern European states such as France and Italy that back duties but largely sparing northern countries such as Germany that oppose them, Beijing launched an anti-dumping and anti-subsidy inquiry into sales of European wine.

http://uk.reuters.com/article/2013/06/05/china-eu-solar-idUKL5N0EH1G720130605

[@contradevian]

I actually bought some French Merlot the other day.

[Bloo Loo]

I actually bought some French Merlot the other day.

chink chink!

[mfp123]

actually Germany does not want to raise tariffs.

firstly they are looking at it from a holistic approach and protecting specific areas might have negative consequences elsewhere. theres no reason for germany to rock the boat when its heavy industry exports are doing so well.

secondly, some of the materials used are actually imported from Germany to make the solar panels, before being imported back so its counter productive.

thirdly the EU is pushing the renewable energy plan and strict timetables, yet this will increase the cost of solar energy in the EU. they want solar energy but this will force you to pay more for it.

it comes as no suprise that there is a division in the EU on this trade war. Northern states germany UK , netherlands sweden etc.. dont want increased tariffs and trade wars, southern states, france italy, spain, want increased protectionism.

Edited July 8, 2013 by mfp123

[corevalue]

The Chinese I know are not great wine-bibbers. Cognac is more their beverage of choice, chosen to impress but not actually to drink.

[Craig_]

The Chinese I know are not great wine-bibbers. Cognac is more their beverage of choice, chosen to impress but not actually to drink.

Interesting. I've been to China a couple of times recently (to promote our own booze brands), and have never seen drinking like it (and I'm Scottish!).