China moves to block European wine dumping in tit-for-tat trade war

The day after the European Union has confirmed that it will place 11 per cent tariffs on Chinese solar panels, China's government has responded against what it calls "unfair" EU levies with an anti-subsidy probe against wine imported from the region.

Many had warned that duties on solar panels could result in a tit-for-tat war as Chinese officials last month said that they would "take necessary steps" if protectionist measures were employed against their solar panel industry.

The Adam Smith Institute's Ben Southwood on the European Union move:

China is bearing most of the cost of the silly policy of subsidising exports. By contrast, we are reaping the benefit of their largesse. In fact, we are effectively being sent charity.