China EU trade spat 'more than handbags'

A trade dispute has been developing between China and the European Union.

The EU accused China of "dumping" solar panels in Europe - selling them at below cost to steal market share - and then said it would impose import tariffs of up to 68% on them.

China promptly retaliated by claiming EU farm subsidies have resulted in Europe "dumping" wine on China, and said it may respond in kind.

Martin Jacques, economist and author When China Rules the World, told the Today programme's business presenter that "this is one of the first serious signs that the EU can react to China and China's competitiveness in a... very modern industry... by slapping on tariffs and being protectionist".

First broadcast on BBC Radio 4's Today programme on Thursday 6 June 2013.