Chinese postpone wine orders on tariff hike fears

(BusinessTimes) - Chinese wine importers have already started putting orders from France and other European countries on hold over fears of a hike in tariffs being triggered as part of a broader EU-China trade dispute, say leading figures in the sector.

Industry insiders attending this week's Vinexpo exhibition here revealed that China's decision to launch an anti-dumping investigation into European wine has created a backdrop of uncertainty that has resulted in buyers sitting on their hands.

"The simple fact that the announcement of an investigation has triggered a wait-and-see attitude from our Chinese customers who prefer to postpone deliveries rather than take the risk of seeing them subject to additional duties when they arrive in two months time," said Georges Haushalter, the chairman of the CIVB Bordeaux wine trade body.

Bordeaux stands to be hit far harder than any other producer region in Europe in the event of China's anti-dumping probe leading to punitive duties on French exports to a fast-growing and potentially huge new market.