CHINA is continuing its probe into the dumping of French and Spanish wine being sold below the cost of production in Chinese markets, a move said to be a response to a French obstruction of Chinese sales of solar panels in Europe, also allegedly at below cost, Reuters reports.

This is against the background of Sino-EU deal talks to defuse trade tensions. Brussels and Beijing started talks on investment pact in November, with many EU nations seeing the initiative as a forerunner to a free-trade deal.

The solar panel dispute has been the most serious with Europe, but they reached an agreement to avert duties. EU officials said they had received reassurances the wine inquiry would also be dropped.

Then Beijing sent a 45-page questionnaire to France, Spain and the European Commission, setting a deadline of December 19 for answers to China's inquiries. Curiously, Italy, a major EU wine producer, did not receive a questionnaire.

EU wine exports to China, more than half from France, reached 257 million litres in 2012, valued at US$1 billion. This does not include Hong Kong, which has separate trade arrangements.