China is considering imposing tariffs on European Union wine, dairy products, and aviation exports in response to ongoing EU anti-subsidy investigations into Chinese companies. This potential move, announced by a Chinese state-affiliated social media account over the weekend, could jeopardize the $800 million wine trade between the EU and China.
Despite a recent decline in China’s wine imports from the EU, the threatened tariffs could impact over $777 million worth of EU wines, which constituted nearly 70% of China’s total wine imports last year, according to official data. Major EU wine exporters to China include France, Italy, Spain, Germany, and Portugal, with France alone accounting for nearly half of these exports.
The social media account, Yuyuan Tantian (玉渊谭天), known for its political commentary and ties to state-owned CCTV, cited “informed sources” warning that “China has ample countermeasures ready and will likely retaliate if the EU persists with its actions.”
A Chinese lawyer quoted by Yuyuan Tantian emphasized the EU wine, dairy, and aviation sectors’ dependence on the Chinese market. The European Chamber of Commerce in China described the warning as “significant,” suggesting that “European wine and dairy products may find themselves caught in the crossfire.”
This year, the EU has launched three major investigations targeting Chinese companies in the railway, solar, and security sectors under a new foreign subsidies regulation and has initiated a trade probe into Chinese-made electric vehicles.
In January, China initiated an anti-subsidy investigation into EU brandy, threatening a $1.56 billion spirits trade. This follows a similar 2014 pattern when China threatened to probe EU wines during a solar panel dispute.
In 2021, China imposed significant tariffs on Australian wines, reaching up to 218%, although these were lifted in late March this year.
