Chinese Acquisitions and Trade Disputes
As we reported in Chinese Wine Production, China is quickly becoming a major player in the world-wide wine market. While vineyard owners and managers are struggling to bring high-quality wine to bare, Chinese investors are expanding their influence in their part of the world.
Recently, a Chinese investment company purchased approximately 336 hectares of vineyard land in New Zealand’s Marlborough wine region. In 2011 investors from Hong Kong purchased vineyards located in Hawkes Bay and Marlborough. Even though the sales were approved by New Zealand’s Overseas Investment Office, debate over foreign ownership of land in New Zealand has been increasing.
Trade disputes involving solar panels from China and wine from the European Union have also begun. Heavily subsidized solar panels from China have been flooding the European markets causing harm to homegrown solar panel manufacturers. In response some member countries of the E.U. levied tariffs on Chinese solar panel imports, much to Beijing’s displeasure.
China is claiming that the sharp rise in wine imports from Europe (up 10% to 266 million liters) are unfair business practices. Chinese authorities investigated and accused the E.U. of dumping and unfairly subsidizing European wine sold in China. Diplomacy is still being sought but threats of more tariffs and claims of unfair duties has already begun. Time will tell if both parties can come to an agreement.
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