China Launches Investigations into EU Imported Wines

As expounded in two announcements released by China’s Ministry of Commerce (MOFCOM) on 1 Jul 2013, China has officially initiated its anti-dumping and anti-subsidy investigation against wines originally imported from EU countries.

Earlier this year, MOFCOM carried out a series of multifactorial reviews in line with “Regulations of the People's Republic of China on Anti-dumping” and “Regulations of the People's Republic of China on Anti-subsidization” upon receiving anti-dumping and anti-subsidy petitions filed simultaneously on the 15 of May 2013 by China Alcoholic Drinks Association. The requests were submitted specifically against imported EU wines. It was concluded that the preliminary evidence presented provided a strong motive for further investigation. MOFCOM has confirmed the validity of the petitions and proceeded with formal announcements and initiation of a thorough investigation.

According to relevant regulations and the results of the reviews above, MOFCOM formally stated that the current investigations into EU wines came into effect as of the date of the announcements. The period under investigation will encompass dates from January 1, 2012 to December 31, 2012. The second investigation is tasked with quantifying the damage and impact subsidization of imported EU wines has had on the domestic Chinese Industry. This investigation will encompass dates from January 1, 2009 to December 31, 2012. Investigation methods will include questionnaires, sampling, hearings, on-site verification and various other methods. The investigations will end on the 1 Jul 2014, with a possible extension to 1 Jan 2015 under exceptional circumstances.

EU wine exporters account for around 60% of the total imported wines in mainland China. While the drinking habits of Chinese consumers are unlikely to change, the impact of the investigation may loosen the stranglehold EU imported wines have had on the lucrative Chinese market.