China: Its Time .... I think.

Talking to a US producer the other day about his Chinese exports, I asked what I should tell others about selling in China. He said tell them, "Come on in. The water is fine." Really? Is it time to jump in and export?

Clearly their consumers are growing in their taste for wine. As producers they are now 5th in World Production. Today in their 10 growing regions, there are more than 800 wineries. Seventy percent produce less than 60,000 cases. The largest 6 wineries are responsible for 70% of total Chinese production.

Hong Kong with a serious lust for wine dropped its import duty to 0% about 5 years ago. Since then the volume of wine traded in the region has spiked, and as demand has grown some of that wine has made it into China without the 41% duty required for imported wine to the mainland which is raising eyebrows among the protectionist ruling party.

Ping-Pong Socialism and Wine

Most people who have a little gray hair remember when the Chinese were really Communists, living behind a wall and carrying little red books. You can debate what they are now if you like, but nobody will argue China is the same as it was in 1971. That's when Former President Nixon's Ping-Pong Diplomacy forever opened the world to the Chinese and their people, and their people to the world. Interestingly, if you ask a person on the street in Beijing about that event, they point to America's sponsorship of China in the world as being a galvanizing point for their country. They are grateful for our part and even teach about our impact in their history classes as I was told by two young women I met there while traveling.