CHINA and the European Union have agreed there is a "window for discussions" to try to resolve accusations that Europe is dumping wine in China, the EU's trade chief said yesterday.

The agreement is part of a deal announced at the weekend to defuse a row over the alleged dumping of Chinese solar panels in Europe, the biggest trade dispute yet between the two economies.

After EU announced its plan to impose punitive duties on solar panels, China launched an anti-dumping inquiry into European wine sales, which would lead to retaliatory duties on exporters in France, Spain and Italy.

"There is a window for discussions between the European Union and Chinese (wine) producers," EU Trade Commissioner Karel De Gucht told a news conference. "The Chinese government has promised to facilitate such discussions."

EU and Chinese diplomats expect the wine dispute, as well as another conflict over EU exports of polysilicon - a raw material for solar panels - to be dropped as a goodwill gesture.

China is the world's biggest importer of Bordeaux wines.

China's commerce ministry could not confirm any freeze of the EU wine investigation, the People's Daily website reported yesterday, citing an unnamed official.

Germany's Wacker Chemie is the world's second biggest maker of polysilicon and would be hurt by any tariffs in China.

De Gucht also said an "amicable solution" to a dispute over EU imports of Chinese solar panels may help settle other spats.