September 07, 2020

China's wine dumping allegations leave the industry gobsmacked

China's wine dumping allegations leave the industry gobsmacked

Australian winemakers are adamant that their product has not been sold on the cheap in China but say they are willing to cooperate fully with the 18-month anti-dumping probe.To get more news about china industry research, you can visit acem.sjtu.edu.cn official website.

The investigation by the Chinese Government will examine claims from China's own winemakers that Australian exporters have been selling wine in that market for less than it cost to produce, and that Australian winemakers are subsidised.

Sales of Chinese produced wine accounted for 75 per cent of market share in 2015, but that had dropped to just 50 per cent last year.

At the same time exports of Australian wine to China grew from $268 million in 2015/16 to $1.75 billion by 2018/19.

Kandy Xu and her husband Huigao Xu fell in love with Australian wine more than a decade ago, and are making their own under the Kensington Wine label with grapes they grow in northern Victoria's Goulburn Valley.

The majority of their wine is exported to China, where Australian wine is the most popular overseas drop.

"I have not received any subsidy from the Australian Government," Ms Xu told the ABC."The reason for saying this is because the data shows that the average price of wine exported from Australia to China has gradually increased in the past 10 years."

China is the largest export market for Australia's wines, with market share growing nearly exponentially as more Chinese drinkers fall in love with Australia's big, bold style of red wines.

Thomas Tang left the medical profession and started importing Australian wines into China in 2002.

Thomas Tang plans to make Australian wines a focal point of his latest business venture, which will feature bars and live online streaming sales.(Supplied: Dr Thomas Tang)
"In the past, the Chinese market was dominated by middle and low-end wines, but now the price and quality of Australian wines sold in China are improving," he said."I have not seen any Australian wine being dumped into China."

His small wine bar in Guangzhou fell victim to China's coronavirus restrictions, but he is currently working on a major development, Music Park, on the outskirts of the busy tier-one city."The precinct includes live music entertainment, nightclubs, bars and live online streaming sales," Dr Tang said.

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