Recently, the spokesperson for China's Ministry of Commerce made a public announcement, revealing that China and Australia, within the framework of the World Trade Organization (WTO), have engaged in amicable negotiations to resolve trade disputes related to wine and other commodities, and have successfully reached a mutually agreeable consensus. This favorable policy news brings renewed hope to the Australian wine sector, which has experienced a dormant period in the Chinese market for nearly three years.
In the past, Australia stood as China's primary source of imported wines. In 2019, Australian wines held a substantial share of over 35% in China's imported wine market, marking Australia as the largest supplier of imported wines in China. However, in March 2021, China's Ministry of Commerce ruled that imported Australian wines were involved in unfair trade practices, causing significant harm to China's domestic wine industry. Consequently, a five-year anti-dumping tax, ranging from 116.2% to 218.4%, was imposed on imported Australian wines. This resulted in a sharp rise in the cost of importing Australian wines and a decline in sales in the Chinese market. By 2022, Australia had fallen out of the top ten sources of wine imports to China, with its market share divided among competitors like France, Chile, Italy, and Spain. The 2021 financial report of Treasury Wine Estates, a global wine industry leader headquartered in Australia, revealed that profits in the Asian region experienced the first decline in nearly six years, primarily due to reduced sales in the Chinese market.
The positive news concerning the Australian wine market has rekindled optimism among Australian wine businesses, as they look forward to their resurgence in the Chinese market. Treasury Wine Estates stated in a press release that if the tariffs are lifted at the conclusion of the review period, they have the capacity to gradually implement a series of strategic plans to rebuild their wine export business in China. Moreover, with the potential return of Australian wines in the Chinese market, significant changes may unfold in the landscape of China's imported wine market. Once the punitive tariffs are removed, Australian wines are poised to exert strong competitive influence, to compete with French and Chilean competitors for market share. Nevertheless, it remains challenging for Australian wines to swiftly regain their previous market position, mainly due to the overall subdued market environment and the need for distributors to deplete their existing inventories.
It's worth mentioning that non-Australian wine distributors also express support for the return of Australian wines. This is because the Chinese wine market has experienced a slowdown in recent years, with a noticeable decline in consumer demand. Australian wines have a strong consumer base in the Chinese market, and their return is expected to infuse new vitality into the industry, driving the recovery and development of the Chinese wine market.
**Disclaimer: All images used in the article are from the Internet.
