Another China twist, but in Australia’s favour?

An interesting report from Natalie Wang, who writes on her Vino Joy site that China might be about to repeat its trade countermeasures with wine. But this time not towards Australia, but the EU, whose wine trade to China is worth something like US$800 million. There are ongoing EU anti-subsidy investigations into Chinese companies and the European Chamber of Commerce in China has recognised that wine and dairy products might be targeted in retaliatory action. The initial warning comes from a social media account closely linked to CCTV. Australian winemakers would suggest that such warnings might be ignored at the EU’s peril. Only time will tell if this amounts to anything more than sabre-rattling and whether or not ultimately – in what would be a bizarre turn of fate – the China market becomes a larger opportunity for Australian wine producers. I would advise them all to stay calm.