Bottles of Penfolds Grange, made by Australian wine maker Penfolds and owned by Australia's Treasury Wine Estates, sit on a shelf for sale at a wine shop in central Sydney
China has begun an anti-dumping probe into imports of Australian wine, it said on Tuesday, a move that knocked a fifth off the market value of Australia’s biggest winemaker and is likely to worsen tension between the nations.
The investigation by China’s commerce ministry will look at imports of wine from Australia in containers of two litres or less in 2019, the ministry said in a statement, and examine any damage to the domestic wine industry from 2015 to 2019.
The Chinese Alcoholic Drinks Association requested the inquiry, asking the regulator to look into 10 Australian wine producers, including Treasury Wine Estates, the maker of Penfolds, and Accolade wines.
Shares of Treasury, the world’s biggest standalone winemaker, fell up to 20% on worries at the prospect of an import tax on Australian wine.
China is the top market for Australian wine exports and is also Australia’s largest trading partner, with two-way trade worth $170 billion last year.
Shares of Treasury, the world’s biggest standalone winemaker, fell up to 20% on worries at the prospect of an import tax on Australian wine.
