Hong Kong ( CNN ) -- Exports of French Bordeaux , Italian Tuscans and Spanish Riojas could get more expensive in China if a tit-for-tat tariff war bubbles over between the world 's most populous country and the European Union . On Wednesday , Beijing launched anti-dumping and anti-subsidy probes into imports of European wine . The inquiry follows new EU tariffs , only announced Tuesday , of nearly 12 % on China-made solar panels that begin June 6 . The European Commission has accused China 's state-subsidized panel makers of flooding European markets with unfairly cheap products . In a public statement , China 's Ministry of Commerce said it had `` received requests from domestic wine companies , accusing European wine companies of entering the Chinese market by dumping products , receiving subsidies and other unfair measures . Based on these requests , the Ministry of Commerce will initiate a serious investigation according to laws and regulations . '' `` This is what we call 'strategic play ' in game theory . It is an action which is intended to have benefits in negotiation , '' says Dr. Xu Bin , Professor of Economics and Finance at the China Europe International Business School , or CEIBS , in Shanghai . China is smart to pick on Europe 's wine industry , adds Xu , because it is `` not core to Europe 's economy '' yet `` symbolic enough '' that it will have an `` immediate impact '' on people 's hearts and minds . If a tariff war ensued , `` it would be very damaging for France , '' says Carl Crook , Managing Director of Montrose Wines , one of China 's biggest importers of foreign wine . France is China 's number one exporter of wines . In 2012 , the country shipped more than 700,000 bottles to China , more than four times the volume of second-ranked Australia , according to the China Customs Information Center . Yet Crook believes a tariff war -- if kept brief -- may actually help the bottom lines of China 's foreign wine importers in the longer term . From 2002 to 2012 , China 's total imports of foreign bottled wine rocketed nearly 15,000 % to more than 1.3 million bottles . But from 2011 to 2012 , growth trickled to an anemic 8 % . `` There has been a lot of enthusiastic buying that needs to be depleted , '' says Crook . `` There is excellent inventory to last a short trade war . I 'm not as alarmed as I think I should be . '' While a quick tariff war might encourage Chinese consumers to drink their imported wine stocks -- and replenish their supplies -- a longer tariff war would have a more ambiguous impact , with potential winners and losers both in China and around the world . `` New world wines are waiting for this opportunity , '' says Crook . `` Australia , Chile , Argentina and South Africa are well positioned . '' Both Chile and New Zealand recently implemented bilateral trade agreements with China that lowered duties on wine imports to zero percent , he adds . `` I do n't think it 's a good thing for us , '' says Judy Leissner , President of Grace Vineyards , a well-known domestic Chinese boutique label that aims to keep volumes at or below two million bottles each year . `` Yes , we are in competition with imported wine , but that imported wine helps educate consumers . If consumers are more highly educated then it 's better for us all . '' Leissner expects a tariff war would only lead to a short-term jump in sales and that big-name , high-volume Chinese wine suppliers like Great Wall , Chang Yu and Dynasty would benefit most . `` If prices rise because of a tariff war , China 's wine companies will have less reason to do better , '' adds Leissner . `` Human beings are lazy . '' Looking ahead , early August is the deadline to a tariff resolution . In two months , the EU tariff of 11.8 % on Chinese solar panels will rise to an average of 47.6 % . If talks fail before then , the EU will decide in December whether to impose duties on panels for a maximum of five years . `` Ideally it would be better for both sides to retreat from their current positions , '' says Xu of CEIBS . `` I understand the European economy is not in good shape , so there is a lot of pressure from domestic lobbies for protection from other countries . '' `` In the end , both will yield some inches , '' says Xu . `` There is no winner in a trade war . ''
China launches anti-dumping , anti-subsidy inquiries into European wine imports . Comment: France is China 's top wine exporter , Australia distant second . EU tariffs on Chinese solar panels set to rise in August if no resolution achieved .