Australian wine giant Treasury Wine Estates (ASX:TWE) has in a way refused to be crushed by various Chinese reports regarding trade in Australia.
As per the media sources, China’s Ministry of Commerce (MOFCOM) is reportedly conducting an inquiry into allegations of product dumping by the Australian industry. Also, it was revealed that the China Alcoholic Drinks Association had requested MOFCOM to impose retrospective charges on import of Australian wine packed in containers of two liters or less into China.
There were also reports that traders in China have been asked to stop importing Australian products like coal, barley, sugar, timber, wine et al. The report claims that the Chinese government authorities have asked the cease to start on Friday.
However, TWE CEO Tim Ford was quoted saying that the Company’s products maintained robust recovery in consumer demand in China in first quarter. He stated that TWE foresees a long-term role in creating wine culture in China.
Meanwhile, the TWE stock traded at $8.060 with a market capitalisation at $6.25 billion at 1:09 PM AEDT.