This kicked off two days ago with China has begun an anti-dumping probe into Australian wine.
Over past months China has hit barley and beef exports from China with increased duties. Looks like wine might be next.
Exports of wine to China are significant
- the country bought $1.2 billion worth of Australian wine in the year to March
- more than one-third of Australia's wine exports by value
- Chinese consumers are generally young and affluent, so its a valuable market that should grow
China alleges that Australia sold wine below the cost of production
This should be seen in the light of deteriorating relations between the two countries. And imposts from China are unlikely to end with wine exports.
The chill in relations is not a positive for the AUD.
