China probes Australian wine imports

 Canberra 'sided with the United States' leads it into trap, says observer

China launched an anti-subsidy investigation into Australian wines on Monday, less than two weeks after launching an anti-dumping investigation against the same product, signaling a continued cooling in economic relations in the face of what the country describes as growing hostility from the administration Morrison to China.

China’s anti-dumping investigation into Australian wine is politically motivated, industry figures say

China's Ministry of Commerce on Monday announced it was launching an anti-subsidy investigation into Australian wines sold in containers of two liters or less. The investigation is expected to conclude on August 31, 2021 under normal circumstances, but it could be extended until February 28, 2022, according to the ministry statement.

China had already launched an anti-dumping investigation against Australian wine on August 18.

"China has launched investigations after it discovered problems with Australian wines exported to China," Li Guoxiang, an agricultural researcher at the Chinese Academy of Social Sciences, said Monday.

“Based on my study of the Australian agricultural sector in 2013-14, it is hardly conceivable that the cost of Australian wine would be lower than that of Chinese domestic wine, so Canberra is probably giving subsidies to its farmers. This is one of the reasons why China has launched its anti-subsidy investigation, ”Li said, indicating that simultaneously conducting anti-dumping and anti-subsidy investigations is a standard trade investigation process under World Organization rules. trade (WTO).

As an economy that relies heavily on trade with China, Australia has seen its wine exports to China increase since 2019, when a free trade agreement came into effect and allowed Australian wines to d 'be imported into China without customs duties.

In 2019, Australia's wine exports to China increased 12% from the previous year to A $ 1.28 billion (US $ 943 million), becoming the largest supplier of wine from China with 37% of the country's annual wine imports

Australia's wine exports could be severely affected if surveys reveal problems, analysts say.

"The Morrison administration itself should be blamed if Australian exports to China drop, because it should have known that its unreasonable actions would have adverse effects on China-Australia economic relations," Zhao Gancheng, director of the Center for Asia-Pacific Studies at the Shanghai Institute for International Studies.

"China has done nothing wrong with Australia, while Australia - in its decision to side with the United States - continues to accuse and attack China unreasonably," he said. Zhao said, noting that this seriously undermined bilateral political confidence.

Australia, which has followed the policies of the US administration, was the first Western country to not allow Huawei's 5G equipment, while calling for an independent investigation into the epidemic situation in China.

"Many hawks in Australia - who are aware of the complementary nature of trade between China and Australia - are playing a game of political provocation against China while trying to reap huge economic benefits from relations with China." Ruan Zongze, executive vice president of the Chinese Institute of International Studies, said Monday.

According to him, Australia's pro-US foreign policy aimed at strengthening diplomatic relations with Washington has put Australia in a "trap", which has led many people to believe that Australia cannot take a stand. decisions by itself. "This is not in line with Australia's interests or international principles," he said.

Products that China imports from Australia can be purchased from other countries, Zhao said, noting that if the Australian government does not care about its economic interests, China can certainly import from other sources. .

Read also 

https://www.forbes.com/sites/timtreadgold/2020/09/24/china-says-it-wants-less-aussie-wine-but-drinkers-say-more-please/#de6bb5e6684a

https://www.bluebiz.com/en/BizClubs/Club-China-News/wine-in-china-from-niche-into-mainstream

https://www.scmp.com/economy/china-economy/article/3099247/chinas-anti-dumping-investigation-australian-wine-politically

Amid deteriorating bilateral relations, China's merchandise imports from Australia fell 4.4 percent year-on-year in the first seven months of 2020 to reach $ 66.92 billion, according to data from the Chinese General Administration of Customs.

Guide to distribute your product in China

Rapid urbanization combined with a growing and changing Chinese economy paves the way for great opportunities and threats for Western businesses. While some jobs are outsourced to the United States and Europe, they can indeed also take advantage of China's new purchasing power by offering to sell to China, a population of around 1.3 billion people.

Basically, the types of products you decide to sell in China should be attractive to Chinese customers to get their attention and engage them. Agricultural products, food and drinks, baby and maternity products, health and wellness products. In addition, there is an increasing emphasis on sporting, leisure and lifestyle items.

What can I sell in China?

With a middle class of over 300 million people, which is growing every year, there are certainly plenty of opportunities to sell products to Chinese consumers. But some products are more in demand than others.

Makeup & fashion

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Selling to China Skin care products like moisturizers and sunscreens are also popular among Chinese consumers. Especially if you offer products made with natural ingredients, you might have a good chance of attracting health-conscious Chinese consumers.

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Fresh products are popular in China

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Food supplements in China

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Dietary supplement & vitamins 

Category of food imported on Tmall Global

Healthy packaged foods in China

You can also woo Chinese consumers with healthy foods that are a little easier to ship. Think about packaged foods that contain healthy ingredients like dried fruits and whole grains. Chinese consumers, especially young people, are more interested in food trends. Sometimes Chinese consumers cannot get these trendy food products from local Chinese sellers.

Sell wine in China

Wineries and small wine brands can attract Chinese consumers as imported brands. Especially for brands that operate in desirable regions, selling in China can generate a lot of growth opportunities. To sell in China, you need to localize your content.

Business in China & strategy

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Our social listening tools help you harness the voices of your customers and prospects across online and social channels, giving you critical feedback and insight into what the market thinks about your customer experience and your Mark. Listening closely and reacting quickly to these social signals in real time can help companies gain and maintain a competitive advantage.

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source of this article ecommercechinaagency.com

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