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Trade Wars: The Chinese Empire Strikes Back

Tyler Durden's picture




 

We reported yesterday that Europe, in a surprising escalation of global trade wars, announced it would impose solar-panel duties against China in one week, with the terms rapidly deteriorating over the next three months. It took China less than one day to retaliate. What's worse the retaliation is aimed at Europe's already weakest - the PIIGS - by targeting not hard German machinery exports but something far more prosaic: French, Spanish and Italian wine.

Reuters reports that "in a step targeting southern European states such as France and Italy that back the duties but largely sparing north European opponents such as Germany, Beijing said it launched an anti-dumping and anti-subsidy probe into sales of European wine. The Chinese ministry said the government had begun the probe into EU wines at the request of Chinese wine makers.

"The Commerce Ministry has already received an application from the domestic wine industry, which accuses wines imported from Europe of entering China's market by use of unfair trade tactics such as dumping and subsidies," it said in a statement.

 

"We have noted the quick rise in wine imports from the EU in recent years, and we will handle the investigation in accordance with the law."

 

The move appeared largely symbolic and less severe than if China had targeted hi-tech exports such as Airbus aircraft, made by Toulouse-based European aerospace group EADS.

 

Beijing imported 430 million liters of wine last year, of which more than two-thirds came from the EU, according to Chinese customs figures. Imports from France alone came to 170 million liters.

Short Diageo and Pernod?

China is the third biggest export market for French wines and spirits by value, worth 1 billion euros ($1.31 billion) in 2012 or nine percent of Paris' wine and spirits exports, according to the FEVS producers' federation.

 

Jim Boyce, who runs the wine blog grapewallofchina.com, said Chinese manufacturers have been upset about alleged dumping for a while.

It appears Spain's recent export stability is about to be monkeyhammered:

"The big issue was all this Spanish wine flowing in here at incredibly low prices," he said.

And should the trade war escalate, things are about to get far, far worse for Europe:

The European Union is China's most important trading partner, while for the EU, China is second only to the United States. Chinese exports of goods to the 27-member bloc totaled 290 billion euros ($376 billion) last year, with 144 billion euros going the other way.

 

Wine sales are only a fraction of overall exports to the rising Asian economic powerhouse but the move raises the risk of more tit-for-tat trade barriers.

 

The EU now has 31 ongoing trade investigations, 18 of them involving China. The largest to date is that into 21 billion euros of imports from China of solar panels, cells and wafers.

 

The EU says it has evidence that Chinese firms are selling solar panels below cost - a practice known as dumping. But the initial duty of 11.8 percent announced on Tuesday by European Trade Commissioner Karel De Gucht was far below the average 47 percent that had been planned.

 

China's Commerce Ministry said it took note of the lower initial rate, but called on the EU to "show more sincerity and flexibility to find a resolution both sides can accept through consultations".

Then again, in a centrally-planned world where the only "growth" is currency dilution who needs trade: Ben and Mario can just print it, right?

 

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Wed, 06/05/2013 - 07:54 | 3625691 Volaille de Bresse
Volaille de Bresse's picture

Merkel's playing her Chinese card against the rest of Europe which means the EU and its supposed solidarity is dead! Good riddance! We're back to European nations!

Wed, 06/05/2013 - 07:57 | 3625701 SoundMoney45
SoundMoney45's picture

Chinese consumers will continue to purchase European wine, as the Chinese government well knows.  This is really quite an odd response from China.

Wed, 06/05/2013 - 08:04 | 3625719 Pizza man
Pizza man's picture

HMMM...French or Italian wine VS Chinese wine? Not even a decision. That's one POS Chinese import we have been spared from seeing at our tables..so far.

Wed, 06/05/2013 - 08:59 | 3625860 Professor Fate
Professor Fate's picture

Chinese wine is actually quite good once you skim the small asbestos particles out and light it up to burn off any traces of lacquer thinner and turpentine.  Actually tastes a bit like a blend of Ouzo and Testor's Plastic Model Cement.

Fate the Magnificent

"Push the Button, Max" 

Wed, 06/05/2013 - 09:13 | 3625931 BigJim
BigJim's picture

To be fair... the Europeans are imposing sanctions because Chinese Solar is being sold 'below the cost of production' - given the EU's CAP, which amounts to subsidies for farmers, it seems perfectly reasonable for the Chinese to impose duties on EU wine for the same reason.

Of course, because we have governments that spend most of their time redistributing costs, it's hard to tell what the cost of production of any good actually is.

Wed, 06/05/2013 - 10:20 | 3626148 Sandmann
Sandmann's picture

The EU CAP costs about the same as US subsidies to agriculture

Wed, 06/05/2013 - 10:31 | 3626192 gmrpeabody
gmrpeabody's picture

"but largely sparing north European opponents such as Germany"

Divide and conquer....,

(China needs the machinery..., they have already stolen what the US had)

Wed, 06/05/2013 - 11:29 | 3626396 Manthong
Manthong's picture

“Chinese wine is actually quite good”

I particularly like the Shanghai River Valley Varietals…

They feature the spiciness of squeeze, with avian and swinish overtones and finish on the palate with a flourish of phosphates.

Wed, 06/05/2013 - 11:32 | 3626406 ParkAveFlasher
ParkAveFlasher's picture

The first word in my mind upon tasting was "smoggy" and "arsenic undertones".

Wed, 06/05/2013 - 12:17 | 3626528 merizobeach
merizobeach's picture

Good job, government of China; I fucking hate you, but punch 'em in their PIIGS, and you can't miss.

Wed, 06/05/2013 - 12:42 | 3626606 boogerbently
boogerbently's picture

They lie about everything. Their toys have lead paint, their drywall is lethal.

Who would ever trust a chinese food product?

Wed, 06/05/2013 - 20:19 | 3628121 StychoKiller
StychoKiller's picture

Hmm, do horses disappear when they produce "Swedish Meatballs?"

Wed, 06/05/2013 - 13:11 | 3626764 SilverRhino
SilverRhino's picture

Chinese wine ... making Australian table wines look great.  

http://www.youtube.com/watch?v=RbOZccv9ym8  

Wed, 06/05/2013 - 09:02 | 3625869 BigJim
BigJim's picture

The Chinese decided PIIGS winemakers were using uncompetitive practices, as the Europeans were not using grapes laced with cadmium, melamine, etc, etc.

Make me laugh! 

Wed, 06/05/2013 - 09:05 | 3625883 Lost My Shorts
Lost My Shorts's picture

Yes, Chinese wine, slightly acid with hints of chocolate and cadmium, and a melamine aftertaste.  They can keep it.

Notice the reference to French wines and spirits.  Let me assure you, there will be no increase in tarriffs on French Cognac.  The people who matter in China wouldn't like that.

Wed, 06/05/2013 - 09:54 | 3626078 malikai
malikai's picture

The people who matter in China aren't concerned with silly tariffs affecting their shopping habits.

Wed, 06/05/2013 - 09:16 | 3625948 EscapeKey
EscapeKey's picture

http://www.reuters.com/article/2011/12/14/us-china-wine-idUSTRE7BD1B220111214

(Reuters) - Chinese wines took the top four places in a China vs Bordeaux blind tasting competition on Wednesday, but it wasn't exactly a thrashing of the world's most elite wines by Chinese upstarts.

 

The wines were all red , mostly Cabernet Sauvignon-based Bordeaux-style blends. The Chinese side was represented by five of what are considered among the best Chinese wines produced; the French wines were five more pedestrian reds from Bordeaux negociants and commercial labels, not chateau-bottled wines.

Wed, 06/05/2013 - 09:56 | 3626084 malikai
malikai's picture

I've had a few of the domestic ones. Not all bad.

On par with your average grocery store quality stuff.

But then again, I've been known to drink wine from the bottle. So maybe I'm not one to listen to.

Wed, 06/05/2013 - 10:34 | 3626201 gmrpeabody
gmrpeabody's picture

"The wines were all red..."

ROFLMAO... good one!

 

Wed, 06/05/2013 - 14:16 | 3627022 Sokhmate
Sokhmate's picture

The wine was red, but was not red wine.

Wed, 06/05/2013 - 11:05 | 3626308 Boxed Merlot
Boxed Merlot's picture

I've been known to drink wine from the bottle...

 

What's this "bottle" you speak of?

Wed, 06/05/2013 - 12:44 | 3626616 boogerbently
boogerbently's picture

That's how "2 buck Chuck" is packaged !

Wed, 06/05/2013 - 12:53 | 3626673 tenpanhandle
tenpanhandle's picture

what's this "2 buck chuck" you speak of?  I thought he was the senator from new yawk.

Wed, 06/05/2013 - 13:29 | 3626842 Overfed
Overfed's picture

I drink mine right out of the box via a funnel! :-D

Wed, 06/05/2013 - 08:06 | 3625726 old naughty
old naughty's picture

Not that odd...when you think killin' 2 birds with one stone.

Back-handed pingpong ball to EU while 'front-hand' on local rice- and plum-wine consumption.

More 'freedom' to consumers after local businesses are 'encouraged' by the Premier.

Wed, 06/05/2013 - 08:10 | 3625734 maxmad
maxmad's picture

Why take out the strong legs, when you can easily knock off the weak legs first (with little effort) and will cause the whole table to come crashing down!!  Nice move Grasshopper!

Wed, 06/05/2013 - 08:31 | 3625776 kridkrid
kridkrid's picture

I think it's more than just that, though I agree.  If there is to be WWIII, Germany is kind of a wildcard, no?  China and Germany seem to be playing nice.

Wed, 06/05/2013 - 08:44 | 3625810 Sudden Debt
Sudden Debt's picture

It's art of war. Divide an conquer.

Attack the enemy where he's not.

The solar panel industry is mostly located in Germany.

It's brilliant!

Wed, 06/05/2013 - 09:11 | 3625920 Stuck on Zero
Stuck on Zero's picture

Absolutely.  China practices this with the U.S. It always retaliates against U.S. industries with the most Capitol Hill clout.  They are brilliant tacticians.  We are old and corrupt.  We either hang together or ...

 

Wed, 06/05/2013 - 08:49 | 3625821 Jdog
Jdog's picture

Wrong, if the Chinese government wants the trade war with Europe, no Chinese will buy their wine. Just like with Japan, the chinese are fighting with Japan over that tiny island, next thing you know, everyone was boycotting Japanese products and stop buying their junk.  The government is in control in China, not the people. 

Wed, 06/05/2013 - 10:38 | 3626211 gmrpeabody
gmrpeabody's picture

The animosity goes way back before that little island...

Wed, 06/05/2013 - 14:38 | 3627113 Herd Redirectio...
Herd Redirection Committee's picture

Indeed, a certain 'Rape of Nanjing' is still bitterly resented. 

Wed, 06/05/2013 - 20:22 | 3628131 StychoKiller
StychoKiller's picture

Indeed, long ago, the Chinese fleet was wiped out by a Kamikaze (divine wind).

Wed, 06/05/2013 - 14:01 | 3626964 twh99
twh99's picture

Or they might buy more Californian wine.

Wed, 06/05/2013 - 07:57 | 3625702 GetZeeGold
GetZeeGold's picture

 

 

Aside from a couple lawyers and banksters....I don't think anyone in Euroland would shed a tear about the EU's death.

Wed, 06/05/2013 - 09:06 | 3625892 123dobryden
123dobryden's picture

well the problem is that EU took a nice things like free movement of capital, goods and services and is shit out a overregulated, costly and competitivness loosing bureaucratic shit....

 

Do we need bureaucrats for FREE movement of those things, we need roads, trains, trucks and logistic for that, not an Army of unpaying taxes shitbags with pay grades of Michael Jordan, that cant even write their own legislation that they are supposed to get paid for, instead it is emailed to them by corporate fucks.

 

EMU took the nice thing as single currency and unable to step to their own legislation, breaking every single paragraph of their own treaty, shit out their own obituary unwillingly, what a showcase of competence.

 

Sadly there is only one country on the palnet walking the right direction, Iceland, but we cant all go there, can we?

Wed, 06/05/2013 - 07:58 | 3625705 negative rates
negative rates's picture

I don't think they  messed up the wine as bad as you messed up those solar cells.

Wed, 06/05/2013 - 07:58 | 3625708 swiss chick
swiss chick's picture

I hope you are right...

Wed, 06/05/2013 - 08:21 | 3625759 samcontrol
samcontrol's picture

solar panels have silver...i,m fucked again!

Wed, 06/05/2013 - 07:55 | 3625692 BudFox2012
BudFox2012's picture

First the start currency wars, then trade wars, then world wars.
- Gerald Celente

Wed, 06/05/2013 - 08:00 | 3625714 kridkrid
kridkrid's picture

Frederic Bastait said it 150 years before Gerald Celente.

Thu, 06/06/2013 - 02:02 | 3628862 matrix2012
matrix2012's picture

Lindsey Williams: Whenever there comes a crack in the derivative market, you will know that the collapse in the financial market is ready to take place.

How can an average person know when a crack comes in the derivative market? There are four items that when you see them take place, you will know the collapse is occurring.

First, there will be currency wars.

Second, there will be trade wars.

Third, there will be an abandonment of the SWIFT system for monetary transfers.

And the last sign to determine the crack in the derivative markets, and the initiation of the economic collapse will be when the Federal Reserve begins to raise interest rates.

Wed, 06/05/2013 - 07:56 | 3625694 ParkAveFlasher
ParkAveFlasher's picture

Cheap Lafite, bitchez!

Wed, 06/05/2013 - 09:04 | 3625882 BigJim
BigJim's picture

Yes, time to short Euro winemakers, amybe time to go long Australian ones

Wed, 06/05/2013 - 09:52 | 3626066 Zero Point
Zero Point's picture

If they won't buy red dirt, we'll sell 'em red wine.

And stuffed koalas made in China.

Wed, 06/05/2013 - 07:56 | 3625696 Oldwood
Oldwood's picture

France and Italy will need all the booze tbey can get to maintain their current delusions.

Wed, 06/05/2013 - 08:00 | 3625698 francis_sawyer
francis_sawyer's picture

You keep your defective solar panels... We'll sit here, drink, & mull things over for awhile... Besides ~ who needs solar panels when you have unelected 'perpetual motion' windbags running the EU...

Wed, 06/05/2013 - 07:57 | 3625700 Quinvarius
Quinvarius's picture

I think China went easy on them.  Probably due to the fantastic deal they are getting on all of the West's gold reserves.  Don't want to close of the trade too much.  Cheap gold now is like getting free oil in a couple years.

Wed, 06/05/2013 - 08:11 | 3625738 ParkAveFlasher
ParkAveFlasher's picture

What else does France export globally?  Wine is a major profit center for the economy.  I imagine many a Frenchie salivated at the prospect of 500MM new wine drinkers.

Wed, 06/05/2013 - 08:16 | 3625748 Sandmann
Sandmann's picture

GE jet engines CFM56 as used in KC135.  Nuclear power plants. High Speed Trains. Weapons Systems. Electricals. Chemicals. Cars. Pharmaceuticals.

 

http://www.worldsrichestcountries.com/top_us_exports.html

http://www.worldsrichestcountries.com/top_us_imports.html

Wed, 06/05/2013 - 09:05 | 3625889 BigJim
BigJim's picture

Yes, people forget France is actually a modern, developed country.

Wed, 06/05/2013 - 09:59 | 3626097 malikai
malikai's picture

I thought it was a modern, undeveloping country.

Wed, 06/05/2013 - 10:57 | 3626276 BigJim
BigJim's picture

+1

Importing millions of people from the developing world who have no intention of integrating will do that to a country.

Hmmm.... 

Wed, 06/05/2013 - 11:33 | 3626409 ParkAveFlasher
ParkAveFlasher's picture

Yes, modern and developed, with an enslaved workforce of North African minors.

Due for correction.

Wed, 06/05/2013 - 12:59 | 3626709 Herd Redirectio...
Herd Redirection Committee's picture

I was talking with a friend of mine about the World Cup scheduled to take place in the summer, in Qatar, a couple years from now.

The heat is expected to be a BIG problem.  There's no way the Europeans are used to playing in that kind of heat (minimum temps of 83 F/28C).  So I said "Which teams do you think will do well in that kind of heat?"

We start naming the top African teams, Ghana, Nigeria, Ivory Coast, etc.  And then a light bulb goes off in my head,

"France?"

Wed, 06/05/2013 - 14:03 | 3626974 twh99
twh99's picture

Sorry to burst your bubble, but the World Cup is taking place in Brazil, not Qatar.

Wed, 06/05/2013 - 14:39 | 3627123 Herd Redirectio...
Herd Redirection Committee's picture

2014 Brazil

2018 Russia

2022 Qatar  (believe it or not, but its been bought and paid for already)

Wed, 06/05/2013 - 14:58 | 3627197 ParkAveFlasher
ParkAveFlasher's picture

With all the smooching in the shadow of the Eiffel Tower in the Parisian springtime, there is an awfully suspect lack of actual French people being born. 

Time to import some more fertile brown people for the gene pool, the savages, with their dirty gold and gooey genital contact.

Wed, 06/05/2013 - 07:58 | 3625704 TheEmperor
TheEmperor's picture

"Wipe them out, All of them"

<incessant cackling>

Wed, 06/05/2013 - 07:58 | 3625706 malikai
malikai's picture

Smart move. Hit the PFIIGS to eat away at periphery support for the union.

They won't need to hit much as the tone is already set.

Wed, 06/05/2013 - 08:03 | 3625717 Never One Roach
Never One Roach's picture

The RMB/Deutschmark backed by the yellow metal will replace the Euro?

Wed, 06/05/2013 - 08:06 | 3625725 malikai
malikai's picture

I wouldn't worry as much about what would replace the Euro as I woud about what will replace the EU.

Wed, 06/05/2013 - 11:34 | 3626412 ParkAveFlasher
ParkAveFlasher's picture

Putin has his magic markers at-the-ready.

Wed, 06/05/2013 - 07:59 | 3625710 Craxi
Craxi's picture

Germany knows that a Sino/Germany alliance is the only way forward to disengage from the EU debacle. Leverage is a bitch.

 

Wed, 06/05/2013 - 08:09 | 3625732 RSloane
RSloane's picture

The awesomely good news for the EU is that their contraction is slowing down, meaning their slowing down is slowing down. If they slow down any more they'll be standing behind themselves. So obviously the smart move is a trade war with China.

Wed, 06/05/2013 - 08:24 | 3625762 azzhatter
azzhatter's picture

If you slit a pigs throat eventually the bleeding stops

Wed, 06/05/2013 - 08:09 | 3625733 Pizza man
Pizza man's picture

Not so fast. Germany made it big time because the Euro structure allowed her to pedle all her stuff to PIIGS, The PIIGS have 10 year old BMW's and a ton of debt to show for it. (One of the largest wealth transfers in history) The Euro goes away and she falls back to where she was 15 years ago.

Wed, 06/05/2013 - 08:17 | 3625749 Sandmann
Sandmann's picture

Funny thing is Germany is a GLOBAL exporter.

Wed, 06/05/2013 - 09:42 | 3626028 dogbreath
dogbreath's picture

nobody made you buy a BMW,  you could have bought Fiat or Pugeot 

Wed, 06/05/2013 - 09:49 | 3626055 Quinvarius
Quinvarius's picture

One you get inside a BMW, you don't want a Fiat or a Pugeot.

Wed, 06/05/2013 - 10:00 | 3626103 Lebensphilosoph
Lebensphilosoph's picture

Once you start spending debt, you don't want to work for a sustainable living.

Wed, 06/05/2013 - 10:51 | 3626227 GoinFawr
GoinFawr's picture

Once the electrics fail for the umpteenth time on your GS, you'll wish you'd bought a DR for 1/6 the price and ~400 times the reliability

Wed, 06/05/2013 - 07:59 | 3625711 Seasmoke
Seasmoke's picture

You know things are bad , when rooting for China and Russia , seems like the right choice.

Wed, 06/05/2013 - 08:10 | 3625735 kridkrid
kridkrid's picture

Sociopaths find their way to the top of large institutions, especially governments and political parties. Chinese and Russian leadership and institutions are no less corrupt than ours or the EU's. There are no good guys only competing bands of thugs.

Wed, 06/05/2013 - 08:26 | 3625765 GetZeeGold
GetZeeGold's picture

 

 

Kinda sucks when you realize the only hint of the truth you're goinna hear from the media is on RT.

Wed, 06/05/2013 - 09:07 | 3625888 hootowl
hootowl's picture

At one time, it could have been said of America that in our society "the cream rises to the top". 

In its current morally degenerate state it must truly be said that the "scum rises to the top".  The lifelong career criminals of both parties have been wallowing in that Washington, D.C. cesspool so long that they can no longer smell the sewage, even while being immersed up to their nostrils in it......They can't tell the difference between a floating turd and a Snickers bar.

I have lost faith in the electoral process.  It has been corrupted by Sorosian dupes and parasitic morons, both rich and poor.

I pray that God will provide the leadership we need....Not the leadership we deserve.

 

STARVE THE BEAST!!!

Wed, 06/05/2013 - 13:15 | 3626779 Herd Redirectio...
Herd Redirection Committee's picture

Meritocracy.  Now a mere memory.  Napoleon was supposedly a big advocate of promoting on merit, as that was (mainly) how he had risen through the ranks.

When he became (or proclaimed himself) Emperor he named his brothers and sisters as kings and queens.  There was no room for merit at that point, it was about protecting himself, and his power, and when you are honest with yourself, you realize the biggest threat comes from close to you.  That is, if he didn't give his brothers and sisters token positions of power, they would likely plot against him!

Oh the parallels...  Substitute Obama for Napoleon.  Lobbyists for 'brothers and sisters', and in place of kings and queens, well, the ability to write their own legislation.

Wed, 06/05/2013 - 08:20 | 3625758 Mike in GA
Mike in GA's picture

Isn't that the truth?!  I never thought the US would be in this shape...our so-called leaders are nothing but political party hacks at every level, scheming and conniving to amass and grow power or prevent the other party from wielding power.  Our most fervent national goal seems to be gay this and gay that while aquiescing to every damn special interest group that sqawks.  Banning any mention of Christianity while bowing and scraping to Musloid murderers runs a close second.

The Russians have pretty damn serious leadership, seasoned, hardened and focused.  The Chinese, too, have serious leadership - witness how they immediately respond to the trade issue, and they don't form study committees.

I love my country and I am not defending the political systems in either China or Russia but if we found ourselves in a war with either, I'd look first to replace the leadership of our side.  Captain Obama and Lt. Biden, XO, would be liabilities.

Wed, 06/05/2013 - 08:37 | 3625787 kridkrid
kridkrid's picture

You are being fooled into believing that Obama or Biden are in charge of anything.  The social issues that you describe are meaningless distractions.  Hell, even the 3 recent scandals are little more than theater.  The banks control the money and the MIC controls foreign policy.  Nothing else matters.

Wed, 06/05/2013 - 13:18 | 3626789 Herd Redirectio...
Herd Redirection Committee's picture

He has been divided and conquered.  Convinced the R vs D battle is real, or relevant.  Its just for appearances.   We rate politicians on their performance in office.  Politicians rate themselves on their performance in getting elected.

Think about that.

Wed, 06/05/2013 - 13:22 | 3626809 Panafrican Funk...
Panafrican Funktron Robot's picture

I would suggest it's even a bit more simple than that.  The financiers control the MIC, so it's really just the financiers controlling everything.

"Give me control of a Nation's money supply, and I care not who makes its laws."

I know you're well familiar with all this, but I thought it might be useful to point out the lack of deliniation.  

"Those who have the gold, make the rules."

Wed, 06/05/2013 - 08:53 | 3625836 Ironmonger69
Ironmonger69's picture

"Chinese, too, have serious leadership - witness how they immediately respond to the trade issue, and they don't form study committees."

They respond so quickly because they play for the long game. They have already formed the study commission, so to speak, ages ago to look ahead for possibilities and prepare for them. Here in the US, as in most western nations, our short term memories and live for today mentality prevents us from adequate future planning. The "leadership" (party irrelevant) are too busy covering their assess and gaming out how to use current events for short term or personal gain, even as those windows of opportunity pass by. And who's going to stop it? An electorate addicted to and demanding more bread and bigger circuses?

Wed, 06/05/2013 - 13:23 | 3626814 Herd Redirectio...
Herd Redirection Committee's picture

China's assets are owned by the international mega-rich, as are Russia's, as are England (City of London)'s, as are America's.

The lesson of the 20th century is, don't allow all-out war between equal powers, unless you finance/control both sides (hence, the duration and outcome).  Blowing up Vietnam or Nicaragua or Panama or whatever is asymmetric enough (i.e. the enemy don't stand a chance) that its not necessary to control those powers before the outbreak of war, but definitely afterwards.

WWI and WWII had groups of banksters financing both sides.

Wed, 06/05/2013 - 08:59 | 3625857 TheReplacement
TheReplacement's picture

I think you underestimate the drive behind Dear Leader's push to amass power.  I don't think he cares a wit about the D party.  He wants power for himself.  I could be wrong.  After all he is the one who said he isn't a dictator and that we should trust government.

Wed, 06/05/2013 - 09:47 | 3626044 smacker
smacker's picture

 

I understand what you're saying...there was a time (some years ago) when I advocated Britain joining the Euro and getting ever deeper into the EU. Not because I ever thought they were any good, but because the governance of Britain was even worse and becoming a police state. It now appears that the EU is following Britain's lead into destruction.

Wed, 06/05/2013 - 10:21 | 3626152 Manipuflation
Manipuflation's picture

Russia?  The whole place is run on cash bribes.  I haven't been back to Russia in many years but I am pretty sure that when I do return, I will not see anything much different than what I recall and I have this really bad feeling that I am going end up dealing with real estate issues, citizenship issues and and estate clearing financial matters one day.  I am not looking forward to any of that.

 

Perhaps a bottle of that Thunderbird wine actually is in order this morning.

Fri, 06/07/2013 - 13:09 | 3634272 MeelionDollerBogus
MeelionDollerBogus's picture

so if Russia upgrades to using insider-trading bribes, hooker-bribes, cocaine bribes and rotating-door job bribes instead of ONLY cash-bribes, Russia will be sucessful like the USSA?

Thu, 06/06/2013 - 20:02 | 3631847 MeelionDollerBogus
MeelionDollerBogus's picture

"or prevent the other party from wielding power"

There is no other party. That's the truth.

Wed, 06/05/2013 - 09:41 | 3626027 smacker
smacker's picture

It simply shows the dislike many people have of the duplicitous French!

Wed, 06/05/2013 - 08:01 | 3625716 Never One Roach
Never One Roach's picture

At least Beijing didn't ban Horsemeat...so every cloud has a silver lining.

Wed, 06/05/2013 - 08:04 | 3625718 Mototard at Large
Mototard at Large's picture

Interesting response from China.  Hit the EU where it already has weakness. Seems like someone in China has been reading Sun Tzu's book on the Art of War!

Wed, 06/05/2013 - 11:35 | 3626416 ParkAveFlasher
ParkAveFlasher's picture

Sun Tzu ... wasn't that guy from Texas?

Wed, 06/05/2013 - 08:05 | 3625720 bvrulez
bvrulez's picture

it would be easier to change the law so that funding on green power (generated by solar panels) is only given to panels produced in the EU. nobody discusses that, though.

Wed, 06/05/2013 - 08:05 | 3625721 Mototard at Large
Mototard at Large's picture

Good news for California, Ontario and the wine producing regions of Chile!

Wed, 06/05/2013 - 09:24 | 3625971 groundedkiwi
groundedkiwi's picture

Good luck with trying to pass those wines off on an informed world. Fukushima radiation is what comes with them.

Thu, 06/06/2013 - 19:48 | 3631786 MeelionDollerBogus
MeelionDollerBogus's picture

Ontario? Chile? Nope. Ontario CANADA (Niagra) has a long way to go before the windstream carries enough particles because it moves south as it crosses the mountains. Chile's on the OTHER side of the equator: the oceanic currents and wind currents are NOT dragging hot particles there. The fish which migrate will. Not a vineyard problem

Wed, 06/05/2013 - 08:06 | 3625724 Truther
Truther's picture

It's war BITCHEZ... Get used to it

Wed, 06/05/2013 - 08:08 | 3625728 Big Corked Boots
Big Corked Boots's picture

There's no way China would tax machine tools from Germany - they still need to buy them, because they haven't figured out how to copy *everything* yet.

Actually, by raising tariffs on wine, aren't they really creating a kind of domestic luxury tax? Do they need the revenue?

Wed, 06/05/2013 - 08:10 | 3625736 Dr. Engali
Dr. Engali's picture

Sounds to me that the Chinese are getting the short end of the stick on that one. They will be missing out on some pretty good wines.

Wed, 06/05/2013 - 08:17 | 3625751 Sandmann
Sandmann's picture

They make their own awful wine but the bourgeoisie like French wine for status

Wed, 06/05/2013 - 08:24 | 3625761 Joe A
Joe A's picture

Call me a bigot but the Chinese don't strike me as people who can appreciate good wines.

Wed, 06/05/2013 - 09:43 | 3626031 gdogus erectus
gdogus erectus's picture

Bigot

Wed, 06/05/2013 - 09:43 | 3626032 gdogus erectus
gdogus erectus's picture

DP - FF

Wed, 06/05/2013 - 09:50 | 3626057 dogbreath
dogbreath's picture

The chinese rival the french for being food snobs.  Your comment is extremely uninformed

Start here:

http://www.youtube.com/watch?v=FRHNa9qdtlw

http://www.youtube.com/watch?v=PCgYUKPNCug

http://www.youtube.com/watch?v=FxQ3j7ls1J0   <----  excellent

There are 7 in the series, you'll find them

 

Wed, 06/05/2013 - 10:00 | 3626100 Clowns on Acid
Clowns on Acid's picture

Food ain't wine dude. Chinese buy good wine to be snobs, but they are born without a palate.

Wed, 06/05/2013 - 10:21 | 3626154 dogbreath
dogbreath's picture

both go in the same hole and a enjoyed/not by the same senses

Wed, 06/05/2013 - 11:50 | 3626457 Joe A
Joe A's picture

Is that that same hole where you picked up your breath?

Wed, 06/05/2013 - 12:45 | 3626623 dogbreath
dogbreath's picture

funny

Wed, 06/05/2013 - 11:49 | 3626455 Joe A
Joe A's picture

Listen dogbreath, one does not develop a taste for wine just because Chateaux Migraine has been brought to your market. Chateaux Migraine is probably what most Chinese can afford. The ones that drink Chateaux Margaux just drink it because it is snobbish.

It's like people in Europe thinking they eat authentic Chinese food in Chinese restaurants there.

Wed, 06/05/2013 - 12:54 | 3626680 dogbreath
dogbreath's picture

People with money everywhere like to brag about the expensive shit they buy and the chinese are no exception.  They like expensive brands at the duty free.   It doesn't mean the quality of what they buy is truely reflected in the price.    To claim a culture of a billion people with no history of coffee or wine consuption will all of a sudden elevate themselves to the level of french or californian sophittication is false.  To claim that the chinese have no palate is absurd.  My friends in china are the worst food snobs.  The appreciation for wine will develop.  Give them time.   Watch those videos thay are worth it.

Do you really  understand the level of wealth in China.   1000usd will allow you to live there a life style comprable to 6000usd at home.   What is money for if not to spend.  The world economy depends on rich chinese consuming.

Thu, 06/06/2013 - 03:36 | 3628920 matrix2012
matrix2012's picture

"A bite of China" is a series of food documentary produced by CCTV. Total of 7 episodes.

It tells the histories and stories behind Chinese cuisine:

-The meaning and the symbol each represents;

-The relation between the nature and the people;

-The creation of unique foods and traditional recipes.

Get to know Chinese life philosophy and the respect they have for the nature and food.

These works in 720p HD with English subtitles by busyfatbee - http://www.youtube.com/user/busyfatbee are the preferred selections, at the moment only the first 6 parts are made available.
Wed, 06/05/2013 - 08:32 | 3625778 RSloane
RSloane's picture

Enter the South American, US, and African wine merchants. Like the US and the EU, the Chinese have a well-oiled propaganda machine at their disposal. When they get done with French wine, drinking it will be tantamount to being unpatriotic.

And good morning Doc!

Wed, 06/05/2013 - 08:38 | 3625789 Joe A
Joe A's picture

Well, you know what you get because these wines always taste the same because they are blended. A Casillero del Diablo always tastes the same, regardless of the year. Nice affordable wine though but it doesn't surprise you anymore at one point.

Wed, 06/05/2013 - 08:11 | 3625737 Aegelis
Aegelis's picture

Walmart Sale: 2 bottles of imported wine with every purchase of a solar panel!

Wed, 06/05/2013 - 09:23 | 3625968 andrewp111
andrewp111's picture

WalMart has "Oak Leaf" brand wine for $3.50 per bottle. Probably one of the few items they sell that is made in the US.

Wed, 06/05/2013 - 09:48 | 3626046 LFMayor
LFMayor's picture

is it made with real oak leaves?

Wed, 06/05/2013 - 10:02 | 3626110 Manipuflation
Manipuflation's picture

It would appear that in 2008, Oak Leaf was only $1.97.  Now you say it is $3.50?  What a fuckiing surprise.  Again.

 

http://voices.yahoo.com/review-walmarts-house-brand-wine-oak-leaf-vineyards-1988508.html?cat=22

Thu, 06/06/2013 - 04:22 | 3628933 matrix2012
matrix2012's picture

The Future of the Global Wine Industry: 340+ brands from just the top 6 wine companies

Over the last 30 years, dramatic changes in the wine industry have occured. From being almost completely domiciled in four European countries (France, Italy, Spain, and Germany), it has spread worldwide to include the US, Australia, Argentina, New Zealand, South Africa, Chile and yes, China (7th largest producer in 2011).

What changes can we expect in the next decade? The globalization of information is leading to changes affecting all industries. These changes include consolidation, specialization, and new production methods. These changes are affecting the wine industry as described below.

Consolidation

In wine, as with other alcoholic beverages, there are large economies of scale to be realized in marketing and distribution. As a consequence, there has been tremendous consolidation.

Table 1 provides just a hint on the enormity of the consolidations underway. Constellation is the largest wine company in the world, with Wine Business Monthly estimating that it sold 102 million cases globally (E&J Gallo global sales are estimated at 80 million). Note the number of brands each company has. In addition to brands,  Bronco did take over the wine company, 585 Partners, last year. Fred Franzia of Bronco says they have 44,000 acres of producing vineyards in California, making it the largest grower in the country. Much of its business involves selling grapes to others.

http://bit.ly/wAoKSW

Thu, 06/06/2013 - 19:40 | 3631753 MeelionDollerBogus
MeelionDollerBogus's picture

interesting. More opportunities for cost to go down, quality to go up, variety to meet every need.

I'm not big on drinking wine, hurts the belly too much for the buzz, I'll go right to rum for that or scotch.

However when it comes to cooking, call it indulgent, but cooking & marinating with a good wine often is much taster than what recipies do qualify for rum. I know of none that qualify for scotch though I dare say attempting to do shiitake mushrooms with scotch might actually work.

too bad my glass demands the scotch first so I'll probably never know.

Wed, 06/05/2013 - 08:12 | 3625740 Sandmann
Sandmann's picture

Chinese exports of goods to the 27-member bloc totaled 290 billion euros ($376 billion) last year, with 144 billion euros going the other way.

 

Poor Europe when the Chinese threaten to reduce their trade surplus !

Americans are truly F*cke* when they think a Trade DEFICIT makes you beholden to the nation causing it.....but the USA has kow-towed to Japan, Taiwan, China for so long it has forgotten how to get off its knees

 

Wed, 06/05/2013 - 08:15 | 3625741 Monedas
Monedas's picture

This is a blantant brag .... a cheap stunt .... that will make me feel good for awhile:   Vella 5 liter box Crisp White, Drinkable Red, Red Blush or Burgundy $8 ea. .... Skydancer 100 mm, full flavor filter box, carton of 200 Class A cigs., export only, sorry no gruesome cancer lungs $6 .... Canadian Club, one litre, adult pour bottle  $12 second bottle $6 .... how do they do it .... volume ? .... NFT (No Fucking Taxes) .... Baja Duty Free, San Ysidro, CA .... the most visited little city !

Wed, 06/05/2013 - 08:16 | 3625747 overmedicatedun...
overmedicatedundersexed's picture

wine prices should drop in US we gain drink up..gotta wait for the trade wars = shooting wars BS. yep let me kill some gooks cause they wont drink our moon shine..lol

Wed, 06/05/2013 - 08:20 | 3625757 mrpxsytin
mrpxsytin's picture

Excuse my ignorance but if dumping is selling a product below the cost of production then why wouldn't you want people dumping stuff in your country? 

If you can do something/make something you're really good at and sell that at a profit then isn't it good if people dump other things in your country? 

Maybe it's just naive but shouldn't each country be trying to specialise in a few industries and do the best at those in the world? Then they trade with other countries who are doing the best in the world in whatever industries they have going on. 

Wed, 06/05/2013 - 13:31 | 3626846 Herd Redirectio...
Herd Redirection Committee's picture

Doing the best?  What?  Are you crazy?

The goal is to be the best at planned obsolescence.  If you can make a dishwasher that fails EXACTLY after 3 years and one day, that, my friend, is success.

Thu, 06/06/2013 - 19:24 | 3631705 MeelionDollerBogus
MeelionDollerBogus's picture

not necessarily: it depends on who is tied into the profits of repair and after-market sales.

In any case the best cure for a dishwasher on the fritz is midol or maybe a box of chocolates.

http://youtu.be/Q0xA7IwZe9M

Thu, 06/06/2013 - 19:22 | 3631703 MeelionDollerBogus
MeelionDollerBogus's picture

in short-term theory this sounds good but here's the problem: #1 no one can afford to do this unless the long-term gain is destruction of a competitor

#2 no one tries to do this unless there is a competitor

#3 re-purposing industries around your country to benefit from others using dumping takes longer than selecting another industry & company / product to target with dumping

#4 as a hostile act it isn't symbiosis where magically you always get stuff dumped at low cost while you produce something else entirely

Wed, 06/05/2013 - 08:22 | 3625760 B2u
B2u's picture

Wine.  I drink mine from a paper bag.  I think it is really fine French wine because I say it is.

Thu, 06/06/2013 - 19:19 | 3631698 MeelionDollerBogus
MeelionDollerBogus's picture

to have real class you have to drink wine from a box at the bus stop.
Yes, the dirty trench coat IS mandatory.

Wed, 06/05/2013 - 08:28 | 3625767 Joe A
Joe A's picture

I guess the Chinese read Sun Tsu's Art of War. I didn't by the way but this move of China seems like it came from there. Smart thing, to upset the relations in Europe with a move like this. Let's see what is more important in Europe: solar panels or wine.

Btw, does this move also apply to wines coming from vineyards in France bought by Chinese?

Wed, 06/05/2013 - 08:29 | 3625769 buzzsaw99
buzzsaw99's picture

I'll bet Mad Dog tastes better than Chinese made wine.

Wed, 06/05/2013 - 08:44 | 3625809 Big Corked Boots
Wed, 06/05/2013 - 09:49 | 3626053 LFMayor
LFMayor's picture

Drink Cisco Red else you don't have a single hair on your ass!

Wed, 06/05/2013 - 09:51 | 3626058 Manipuflation
Manipuflation's picture

Fucking Thunderbird.  That shit is just plain wrong.

Wed, 06/05/2013 - 08:49 | 3625823 hootowl
hootowl's picture

Probably less pollution and poisons than Chinese wines.

 

STARVE THE BEAST!!!

Wed, 06/05/2013 - 08:34 | 3625775 Monedas
Monedas's picture

What's worse than expensive, pithy, bitter red wine that "takes the enamel off your teeth and leaves it on the roof of your mouth" with all the banker cum ?     Ernest Hemingway   A Farewell To Arms 

Wed, 06/05/2013 - 08:34 | 3625782 fijisailor
fijisailor's picture

I had a German friend who worked for Bosch for years in China where they were trying to get the Chinese to produce quality diesel engine fuel injectors.  He said Bosch just gave up.  The Chinese couldn't/wouldn't do it.

Wed, 06/05/2013 - 09:39 | 3626019 MilwaukeeMark
MilwaukeeMark's picture

They were just incompetent enough to steal the design. Then they will re emerge in their own Chinese cars .
Bosche execs ..." Don't they look just like ours?"

Thu, 06/06/2013 - 19:14 | 3631684 MeelionDollerBogus
MeelionDollerBogus's picture

honest question: were they expected to sell them for far too cheap vs the cost of the quality they were being asked to produce?

Wed, 06/05/2013 - 08:38 | 3625793 MilwaukeeMark
MilwaukeeMark's picture

You find this large, hybernating, Grizzly bear, so you feed him. He starts to awaken from his long slumber. So you feed him some more. He becomes fully awake and starts to sit up. So you feed him yet again and he gets up on all fours. You feed him and feed him and feed him and soon you start to run out of food. So he eats you next.

What part of this didn't anyone see coming?

 

Wed, 06/05/2013 - 08:41 | 3625801 fijisailor
fijisailor's picture

When you're a politician and you eat bear turds you see it clearly and they taste good.

Thu, 06/06/2013 - 19:12 | 3631673 MeelionDollerBogus
MeelionDollerBogus's picture

Someone's gotta find out what the market will bear.
http://youtu.be/Q0xA7IwZe9M

Wed, 06/05/2013 - 08:53 | 3625802 Monedas
Monedas's picture

The Mexican Mafia and efficient American producers bringing good things to life !  Cut out the middle man .... Obammy ! Mexico .... relatively "nigger free" !     Monedas    1929     Comedy Jihad I Report You Decide World Tour   Disclaimer:  The use of the word "nigger" in parentheses is my attempt to comply with the President's guidelines for racial dialogue .... which he failed to give us !  I'm beginning to suspect .... the man is insincere ?

Wed, 06/05/2013 - 08:44 | 3625808 Dan Conway
Dan Conway's picture

Brilliant!  Slap the french and tax the rich chinese at the same time. 

Wed, 06/05/2013 - 08:50 | 3625827 d edwards
d edwards's picture

Yeah and the Chinese can get perfectly good wine from Australia.

 

Gotta give to 'em-they hit the EU where it hurts.

Wed, 06/05/2013 - 08:58 | 3625855 williambanzai7
williambanzai7's picture

I tried one miserable Chinese wine. She wined all night.

Wed, 06/05/2013 - 09:28 | 3625981 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Reminds me of the old joke about good jewish wines. Take me to Miaaaaaaaaaaaaaaami.

Wed, 06/05/2013 - 09:02 | 3625874 orangegeek
orangegeek's picture

Australia, New Zealand, Chile, Argentina, South Africa, USA - the wine producers here are lovin' it.

Wed, 06/05/2013 - 09:10 | 3625911 the not so migh...
the not so mighty maximiza's picture

don't forget Cypress

Wed, 06/05/2013 - 09:03 | 3625877 Divine Wind
Divine Wind's picture

 

 

 

Opus One knockoffs.

 

 

Wed, 06/05/2013 - 09:03 | 3625880 VonSalza
VonSalza's picture

Next step stopping the export off European baby powder milk.

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