Beijing's move raises prospect of price rises for EU wine exports a day after Brussels imposed tariffs on Chinese solar panels
A Europe-China trade war took firmer shape on Wednesday when Beijing announced it has opened an anti-dumping inquiry into EU wine exports a day after Brussels imposed tariffs on Chinese solar panels.
Beijing's move came after weeks of intense lobbying against Karel De Gucht, the EU commissioner for trade, who resisted fierce German pressure not to impose the sanction and to give more time for negotiations.
De Gucht partly bowed to the pressure by phasing in the tariff, setting it at 11.8% on the solar panels for an initial two months – but insisted it would rise to 47.6% by August if there was no settlement of the dispute.
De Gucht's announcement was promptly followed by a move from Beijing, where the commerce ministry said it was opening the wine inquiry, raising the prospect of stiff price rises for French and Italian wine exports.
The French have been firm supporters of the EU move on solar panels, placing them at odds with Germany which is by far China's biggest trade partner in Europe and which has strongly contested Brussels' decision.
The Chinese strongly criticised the EU decision on solar panels, voicing "resolute opposition".
"We hope the EU will further show their sincerity and show flexibility, through consultations to find mutually acceptable solutions," a commerce ministry statement said.
China is by far the world's leading producer of solar panels, an ascendancy that European business lobbies argue is due to heavy state support in the form of subsidies and cheap loans.
De Gucht's decision to impose the lower tariff initially was seen as a concession to Germany and to the Chinese. There are certain to be battles behind the scenes across Europe as the August deadline for the full tariff approaches.
The Chinese warned there "would be no winners" in a trade war. The prime minister, Li Keqiang, phoned José Manuel Barroso, the European commission president, on Tuesday evening to complain, the official Chinese news agency reported.
He warned of retaliation. China exports more than €20bn (£17.1bn) worth of solar panels a year to the EU, 80% of the panels used in the bloc, according to De Gucht.
He argued that European business was being wrecked by "this dumping" and declared that the "ball is in China's court". Reported by guardian.co.uk 2 hours ago.
A Europe-China trade war took firmer shape on Wednesday when Beijing announced it has opened an anti-dumping inquiry into EU wine exports a day after Brussels imposed tariffs on Chinese solar panels.
Beijing's move came after weeks of intense lobbying against Karel De Gucht, the EU commissioner for trade, who resisted fierce German pressure not to impose the sanction and to give more time for negotiations.
De Gucht partly bowed to the pressure by phasing in the tariff, setting it at 11.8% on the solar panels for an initial two months – but insisted it would rise to 47.6% by August if there was no settlement of the dispute.
De Gucht's announcement was promptly followed by a move from Beijing, where the commerce ministry said it was opening the wine inquiry, raising the prospect of stiff price rises for French and Italian wine exports.
The French have been firm supporters of the EU move on solar panels, placing them at odds with Germany which is by far China's biggest trade partner in Europe and which has strongly contested Brussels' decision.
The Chinese strongly criticised the EU decision on solar panels, voicing "resolute opposition".
"We hope the EU will further show their sincerity and show flexibility, through consultations to find mutually acceptable solutions," a commerce ministry statement said.
China is by far the world's leading producer of solar panels, an ascendancy that European business lobbies argue is due to heavy state support in the form of subsidies and cheap loans.
De Gucht's decision to impose the lower tariff initially was seen as a concession to Germany and to the Chinese. There are certain to be battles behind the scenes across Europe as the August deadline for the full tariff approaches.
The Chinese warned there "would be no winners" in a trade war. The prime minister, Li Keqiang, phoned José Manuel Barroso, the European commission president, on Tuesday evening to complain, the official Chinese news agency reported.
He warned of retaliation. China exports more than €20bn (£17.1bn) worth of solar panels a year to the EU, 80% of the panels used in the bloc, according to De Gucht.
He argued that European business was being wrecked by "this dumping" and declared that the "ball is in China's court". Reported by guardian.co.uk 2 hours ago.