China, EU trade tension may lead to wine tariffs

Officials in China have hinted that EU wines and other goods could be hit with punitive import tariffs, pending the result of several European Commission investigations into possible Chinese state subsidies in other business sectors.

A warning on a Chinese social media account with close links to state media included a legal expert naming wine and dairy as two agricultural sectors that could be targeted, according to Bloomberg.

This warning was also reported by the China Chamber of Commerce to the EU on X, formerly Twitter. 

In a press statement on 18 May, the Chamber said it had been informed that China has ’sufficient countermeasures at its disposal’, should the EU continue with its actions. 

It’s a sign of strained trade relations between the two sides, and comes as the EU is expected to conclude an investigation into possible Chinese state subsidies for the electric vehicle sector.

Earlier this year, China announced a formal anti-dumping probe into brandy imported from the EU. 

Top Cognac and Lafite uncorked for Xi Jinping in France

Cognac producers count China as a major market and the probe may have been discussed when Chinese president Xi Jinping visited French counterpart Emmanuel Macron in early May. 

Macron held a state dinner at the Elysée Palace in Xi’s honour.

Drinks served included Hennessy XO and Martell Cordon Bleu XO Cognacs, as well as Château Lafite Rothschild 2007 and Maison Edouard Delaunay’s Corton-Charlemagne Grand Cru 2020, said the Vitisphere publication.

China was the third biggest market for French