The Chinese wine market is about to shut down?
The European Union charges excise for Chinese photovoltaic panels and the Asian giant threatens to put taxes on imported wines
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box and wine
A battle with worrying results and a case of retaliation. It does seem as though the Chinese photovoltaic panels have pollutant components as well as being produced with few health guarantees for the workers. The result is a really low price. The consortium for European enterprises Eu ProSun with the German industries in the lead has judged the Chinese competition unfair and has asked for the enforcement of antidumping duties. After 9 months of investigations, Bruxelles has decided to apply them in a provisional manner, as they had done previously in USA.
The Chinese authorities are studying their countermove as usual in these cases, it will be a “retaliation”.
The news, reported by the “Wall Street Journal”speaks in facto f new excise to be charged for wine being imported. Taxes which would harm the major
China and wine
exporting nations such as France (612,35 million euro in 2012), Spain (87,51) and Italy (75,01). This political tactic is well known: the interest of hose nations other than Germany are touched, where the concentrations of production of solar panels is, so as to create a political opposition to the excise of which the Germans would make the most of . It is also to be noted that the Chinese are making a lot more wine and the colossus Yantai Changyu, with its 16.700 is by now the largest wine maker in the world. To understand the entity of this enterprise it is sufficient to say that regions such as Trentino Alto Adige, Umbria or Marche have less area cultivated with vines. In a short laps of time China has reached a production of wine equivalent to a fifth of France (top of the list) and it continues growing. It must be considered that the population in China is nearly one and half billion but most of all its million millionaires make it a very desired market for two opposite segments, low priced wine by the liter from Chile and luxury bottles especially from France.
Chinese wine tasters
The Italian wineries might also suffer a repercussion through the customs battle with China. In 2012 our export touched 15 million Euro and was increasing even thug its slice of Chinese market was only 6,5%. It must also be underlined that no other nation around the world pays a price per liter superior to Hong Kong for Italian wine and that the ex British isle is an authentic commercial portal to China. Will that too be shut?
The action by the Chinese authorities against European wines refer to the OCM financing for promotion with an antidumping procedure which will hit all of the wineries who benefit from such contributions. In other words those who have benefited with difficulty will be able to export to the Asian giant, at least until the excise on the solar panels is not cancelled.