China launches anti-dumping investigation into Australian wine

China has launched an anti-dumping investigation into Australian wine imports, prompting a trading halt by one of the nation’s biggest winemakers.

China’s anti-dumping investigation into Australian wine imports will run until August next year. Picture: File

CHINA has launched an anti-dumping investigation into Australian wine imports.

The shock announcement, made this morning by China’s Ministry of Commerce, immediately prompted a trading halt of one of Australia’s biggest winemakers and exporters, ASX-listed Treasury Wine Estates.

The investigation will look into Australian wine in containers of two litres or less, imported in 2019.

It’s the latest blow on Australian agricultural trade to China amid ongoing tensions between the two countries, and could be a huge hit to the $1.1 billion wine trade.

In a statement, the China’s ministry said it received an anti-dumping investigation application from the Wine Industry Association of China on July 6, and that the investigation would run until August next year, with the possibility to extend it to February 2022.

Australian Grape and Wine chief executive Tony Battaglene said the industry “would of course co-operate” but did not believe it had engaged in dumping.

“We are currently seeking more information from DFAT,” Mr Battaglene said.

Federal Agriculture Minister David Littleproud this afternoon rejected China’s allegations, noting Australian producers were among the least subsidised in the world.

“While we respect the right of any nation to defend their domestic producers from unfair and uncompetitive trade practices, we reject any claim that Australian wine product has been dumped into China,” Mr Littleproud said.

“The Australian Government will continue to work closely with industry to fight these claims.”

It comes after China slapped Australian barley imports with tariffs of more than 80 per cent from May this year, following an 18-month anti-dumping investigation.

That investigation and decision decimated Australian barley growers trade to China, effectively wiping out the billion-dollar trade overnight.

Treasury Wine Estates went into a trading halt this morning following news of the investigation.

In a statement issued to investors, the company said it would co-operate with any requests received from Chinese or Australian authorities.

“TWE has a long and respectful relationship with China over many years … As an importer of high-quality, premium Australian wine, including brands such as Penfolds, TWE remains committed to China as a priority market and will continue to invest in its Chinese business and its relationships with customers and consumers,” the statement said. 

TWE shares fell 14 per cent this morning to $10.6 each.

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