China has stepped back from hitting European wine producers with punitive tariffs, the EU's trade chief indicated on Monday, after EU and Chinese officials made a deal to avoid levies on solar panels from China.
After resolving their biggest trade dispute yet, Beijing and Brussels will hold discussions over accusations that French, Spanish and Italian wine is being exported for sale at below the cost of production, in a practice known as dumping. They will also hold talks over exports of polysilicon, a raw material used in solar panels, which is another contested subject between both sides.
"There is a window for discussions between the European Union and Chinese [wine] producers," EU trade commissioner Karel De Gucht told a news conference. "The Chinese government has promised to facilitate such discussions," he said.
China's openness to resolving a string of related disputes could signal an easing of tensions between two of the world's biggest economies, but their relationship remains delicate as both sides seek to protect industries from unfair competition. Europe is China's most important trading partner, while for the EU, China is second only to the US, but ties are strained as China seeks to increase its production of sophisticated products that Europe makes.
In the solar dispute, De Gucht reached a deal with Beijing on Saturday by setting a minimum price for Chinese solar panel imports in Europe, which were worth €21bn (£18bn) last year.