(Adds background on China probe, U.S. restructuring; management...

(Adds background on China probe, U.S. restructuring; management quote)

Nov 5 (Reuters) - Treasury Wine Estates Ltd (TWE) said on Thursday it had paused the demerger of its Penfolds division, as it focuses on restructuring of its U.S. business and responding to an anti-dumping probe by China into imports of Australian wine.

The troubled Australian winemaker said in April it may spin off the prestigious Penfolds label, which drives more than half of the company's profit, in order to boost profit amid upheaval brought by the coronavirus crisis.

Since then, its woes have only increased. On Wednesday, the company said a Chinese drinks group has called for retrospective tariffs on Australian wine imports amid escalating trade and diplomatic tensions between Beijing and Canberra.

China had begun an anti-dumping probe into imports of Australian wine in August. China is the top market for Australian wine exports and is also Australia's largest trading partner.

However, while the demerger has been paused, the company said it continues to see long-term value in it.

"We continue to believe that incremental long-term value will be created from a separate focus for Penfolds and TWE's other brand portfolios," Chief Executive Officer Tim Ford said in a statement.

The company was planning to complete the potential Penfolds demerger by the end of 2021.

The restructuring of the U.S. business is on track, Treasury added, as it continues to progress on a range of alternatives for the sale of brands and assets.

Even before the coronavirus pandemic disrupted social life across the globe and led to closures of restaurants and bars, the world's largest listed winemaker was under pressure from competition dragging on its growth in the United States.