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In 2020, Australia was the largest wine supplier for China, with an annual export value of 627 million euros. Besides Australia, China’s other major wine supplying partners included France and Chile.

The imported wine market in China

Until recently, imported wine was still seen as a potent symbol of a luxurious life in China. In the past, wine consumers mainly purchased imported wine for gifting or business banquets instead of personal enjoyment. The imported wine market in China has since started to show robust growth as Chinese consumers have become wealthier and more willing to embrace global trends. In 2019, the market share of imported wine leaped to nearly 50 percent from only a quarter in 2015. However, due to the coronavirus pandemic and the trade disputes with Australia, China’s wine import volume plunged by nearly one-third in 2020.

The future of Aussie wine in China

The fate of Australian wine in China has experienced twists and turns. In the first half of 2020, Australia surpassed France to be China’s leading wine exporting partner. Only a few months later, China imposed temporary anti-dumping measures on wine imports from Australia by announcing a steep tariff of 212 percent, which led to a huge slump in Australia’s wine exports. In the first five months of 2021, the sales volume of Australian wine in China suffered from a nearly 85 percent year-on-year loss. In June 2021, the Australian government announced that they would file a complaint to the WTO to settle trade disputes.