Chinese authorities have launched a second probe into Australian wine, claiming government subsidies could infringe on current trade rules.

As reported by Vino Joy News, the Chinese Ministry of Commerce posted a statement on its website announcing the launch of an anti-subsidy investigation into Australian wine exports in two litres or less.

The investigation, like the anti-dumping probe, will last for at least a year and could be extended to February 28, 2022 if needed under special circumstances, the Ministry says.

Australian Grape and Wine (AGW) has released its response to the news, saying the organisation is “well placed to respond to this investigation”.

“AGW acknowledges the Chinese Ministry of Commerce has now formally launched a countervailing duties investigation on Australian wine in China,” the statement reads.

“This was flagged on 18 August 2020, at the time MOFCOM announced it would be launching an anti-dumping investigation on Australian wine in China.

“The Australian grape and wine sector is well placed to respond to this investigation. AGW will collaborate with wine businesses and the Australian Government to ensure we cooperate fully throughout the investigation process.

“China is an important market for Australian wine and our wine is in demand from Chinese consumers.

“Australia has a large number of exporters with close cultural ties to China. The Australian industry welcomes the opportunity to build on these ties and work with the Chinese industry and government to further technical cooperation and develop lasting relationships.”

Meanwhile, Australian Trade Minister Simon Birmingham told Channel 9’s Today that the second announcement has not triggered the same reaction because Chinese authorities had informed the Australian Government of the planned second probe into Australian wine two weeks ago.

“We see here today there is a report released by the Australian Strategic Policy Institute which identifies that many countries around the world are facing some of these types of challenges and issues in relation to their engagement with China – Australia is not alone in that regard,” he said.

“I’ve been very concerned at the number of different trade issues that have come our way this year that I think changes the risk profile for Australian businesses in engaging with China, and I’m very concerned that many of them lack what I think is substance in terms of the claims that are made.

“That’s why we’re working so hard to defend our wine industry, indeed all of our exporters, who engage very much on commercial terms in the way in which they operate in China or any other nation.”

Minister Birmingham added that the Australian Government is working hard to have government-to-government discussions with the Chinese Government.

“At government-to-government levels, we are open to have mature discussions to work through difficult issues at the Ministerial level,” he told Channel 9’s Karl Stefanovic.

“The engagement there is extensive and ongoing, but it is important those government discussions happen – that is what mature nations should do to work through points of difficulty, and the Australian Government under Scott Morrison stands very, very ready to have those discussions.”

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