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SYDNEY—China is investigating whether or not Australia is dumping low-cost wine into its home market, deepening a diplomatic and commerce row between the 2 international locations that has worsened because the coronavirus pandemic started.
Chinese officers stated Tuesday the antidumping inquiry would final not less than a 12 months. They didn’t elaborate on the rationale for the probe, although Australian officers stated native Chinese winemakers had requested the investigation. Analysts stated China might droop imports throughout the probe or impose new tariffs as soon as the inquiry is completed, a serious blow to Australia as China is its prime export market by worth for wine.
The dispute comes as Australia’s economic system is below heavy pressure, with its second-largest metropolis in lockdown and its worldwide border closed. Prime Minister Scott Morrison’s authorities says the economic system is experiencing its first recession in 28 years.
Chinese officers are additionally contemplating a countervailing-duties investigation along with the antidumping investigation, stated Simon Birmingham, Australia’s commerce minister. That probe would look particularly at whether or not Australian winemakers obtained and benefited from authorities subsidies. Mr. Birmingham stated Australian wine isn’t offered at below-market costs and exports aren’t sponsored.
“This is a very disappointing and perplexing development,” Mr. Birmingham stated. “Our wine industry has worked incredibly hard to establish itself as a world-leading producer and export powerhouse.”
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