China formally began an investigation on Monday into whether Europe is selling wine in China below cost, a response to escalating trade tensions with the European Union.

The Chinese government said it would seek to determine if EU producers benefited from unfair subsidies following a complaint from its own wine producers.

EU officials have said China is only targeting the EU wine industry in retaliation for a dispute with the European Union over cheap Chinese solar panels.

A European Commission spokesman said he was disappointed to learn of China's latest action and that the Commission, the EU executive, would examine whether it was consistent with World Trade Organization (WTO) rules.

WTO rules prevent members from levelling tit-for-tat sanctions, instead requiring proof assembled via thorough investigation that a country's industry has suffered damage before any duties can be imposed.

In its announcement on Monday, China's Commerce Ministry said its inquiry, expected to last at least a year, would meet the relevant WTO rules.

"The Ministry of Commerce will follow the principles of openness, fairness and transparency, fully respect all parties' legal rights, and make a fair ruling based on objective fact and the relevant laws and regulations," it said.

The European Union accuses Chinese manufacturers of dumping billions of euros' worth of solar panels in Europe at below-production cost.

It levied punitive tariffs on Chinese solar panels in June and has warned the duties will rise further unless a negotiated solution is reached by early August.

EU Trade Commissioner Karel De Gucht, in China last month for talks, said he hoped any agreement on solar panels would help to resolve the wine dispute. EU officials deny the dumping of wine in China or subsidising exports.

The European Union is China's most important trading partner, while for the European Union, China is second only to the United States.

Chinese exports of goods to the bloc totalled 290 billion euros ($377 billion) last year, with 144 billion euros going the other way.

Wine sales are only a small fraction of overall EU exports, but China's rapidly expanding middle classes have a growing thirst for European wines, especially those from France.

China has become the biggest importer of Bordeaux wines, whose consumption rose by 110 percent in 2011 alone.

中国商务部对原产于欧盟的葡萄酒进行反倾销和反补贴调查

中国商务部周一称，称收到国内企业针对原产于欧盟的葡萄酒正式提交的反倾销和反补贴立案调查申请。

商务部发布公告称，2013年5月15日，商务部收到中国酒业协会代表国内葡萄酒产业正式提交的反倾销调查申请，申请人请求对原产于欧盟的进口葡萄酒进行反倾销和反补贴调查。 

根据上述审查结果及《中华人民共和国反倾销条例》第十六条规定，商务部决定自2013年7月1日起对原产于欧盟的进口葡萄酒进行反倾销和反补贴立案调查。本次调查确定的倾销调查期为2012年1月1日至2012年12月31日，产业损害调查期为2009年1月1日至2012年12月31日。

商务部称，本次调查自2013年7月1日起开始，通常应在2014年7月1日前结束调查，特殊情况下可延长至2015年1月1日。

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