Wine exports to China hit a record A$1.25 billion (US$900 million) last year, according to Australian government data, making it the biggest market by value for the product.
Australia said it would work with local wine producers to defend the industry against the claims, saying it was second only to New Zealand as the least-subsidised globally.
“While we respect the right of any nation to defend their domestic producers from unfair and uncompetitive trade practices, we reject any claim that Australian wine product has been ‘dumped’ into China,” agriculture minister David Littleproud said in a statement.
China’s ambassador to Australia warned earlier this year it could take such measures.
“The Chinese public is frustrated, dismayed and disappointed with what Australia is doing now,” Cheng Jingye told the Australian Financial Review in April.
“Maybe the ordinary people will say ‘Why should we drink Australian wine? Eat Australian beef?'”