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Outlook for China’s Wine Market: Current Trends and Opportunities

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China’s wine market faces challenges like declining consumption and imports, but remains resilient. Adapting to consumer preferences, focusing on quality and sustainability, and using digital platforms for sales are key strategies. Despite setbacks, the market is promising for foreign producers.


Despite challenges such as declining consumption and import figures, China’s wine market remains resilient and promising. Strategic adaptation to evolving consumer preferences, emphasis on quality and sustainability, and leveraging digital platforms for sales are pivotal strategies for success in this dynamic and competitive landscape.

In recent years, China’s wine market has faced significant challenges marked by declines in key metrics such as consumption, imports, and domestic production. These difficulties were further compounded by the disruptions brought about by the COVID-19 pandemic. Despite these setbacks, the market retains its allure, presenting opportunities for foreign wine producers and exporters who are willing to adapt and strategically engage.

As consumer preferences evolve and government policies increasingly emphasize quality and sustainability, understanding these complexities becomes crucial for stakeholders navigating China’s evolving wine landscape. By staying attuned to shifting trends and regulatory developments, stakeholders can position themselves effectively to capitalize on the market’s enduring potential.

The wine sector in China has experienced dramatic shifts over the last two decades, initially reflecting rapid growth and then gradually declining. In the early 2000s, China emerged as a lucrative market for global wineries seeking expansion due to soaring wine imports driven by rising consumer wealth and the perception of wine as a symbol of sophistication. However, per capita consumption peaked around 2012, and imports have since plateaued, with recent years showing significant market contraction. The COVID-19 pandemic exacerbated these challenges, particularly affecting wine sales due to its association with social gatherings, which were restricted during lockdowns.

Following this trend, in 2023, China saw a significant decline in wine consumption, with a 24.7 percent decrease compared to 2022. According to the International Organization of Vine and Wine (OIV), China’s wine consumption has been falling since 2018, averaging a loss of 2 million hectoliters annually.

Nevertheless, China remains the ninth-largest wine-consuming nation worldwide.

Looking forward to 2024, China’s wine market is poised for dynamic activity, delineated primarily by consumption settings: at-home and out-of-home. According to Statista, revenue from wine sales in supermarkets and convenience stores (at-home) is forecast to reach US$9.7 billion. In contrast, revenue generated from wine consumed in restaurants and bars (out-of-home) is expected to be substantially higher, totaling US$17.2 billion. This projects the total revenue from the wine market to reach US$26.8 billion by the end of 2024.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

China

Ping-pong diplomacy: Australian table tennis players return to China, five decades after historic tour

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Two original members of Australia’s 1971 ping-pong diplomacy team return to Beijing, celebrating 50 years of bilateral relations initiated by their historic visit, fostering enduring cultural and diplomatic ties.

This week, two of the original members of Australia’s 1971 “ping-pong diplomacy” team are returning to Beijing to mark the 50th anniversary of diplomatic relations between the two nations.

Half a century ago, few could foresee that a spur-of-the-moment, unscheduled visit by a young Australian sports team would lead to one of Australia’s most important – and sometimes turbulent – bilateral relations.

Only weeks after the team’s headline-making tour, Australia’s then opposition leader, Gough Whitlam, led a delegation to Beijing promising to open diplomatic relations “when elected”.

Whitlam delivered on that promise in 1972. Three weeks after taking office as Australia’s 21st prime minister, his government reached an agreement with the People’s Republic of China on the establishment of diplomatic relations. The following year, Australia’s first embassy in Beijing opened with the appointment of Stephen FitzGerald as the first ambassador.

As FitzGerald recounted on my podcast, The Ticket, this week:

The Chinese have a big love of sport, as do Australians. At one stage they used to talk about the three great balls. One was table tennis, one was basketball and one was volleyball.

Former coach Noel Shorter, former player Paul Pinkewich and former Australian ambassador to China Stephen FitzGerald.
Tracey Holmes

‘A crowd of 8,000 people’

The 1971 ping-pong tour wasn’t the first time sport was used as a diplomatic tool, but it was perhaps one of the most successful of the Cold War period, with long-term benefits.

After competing in the Table Tennis World Championships in Japan in late March 1971, Australian and American table tennis players were invited to travel to China by the country’s first premier, Zhou Enlai. A revolutionary who became one of China’s most revered statesmen, he advocated peaceful co-existence with the West and other nations.

The American team embarked on their tour first – setting the stage for then-President Richard Nixon’s famous visit to Beijing in 1972. The Australians made their trip to China a couple weeks later.

Read more:
50 years after Gough Whitlam established diplomatic relations with China, what has changed?

Paul Pinkewich had just turned 20 at the time of the visit, teammate Steve Knapp was only 18. Now in their 70s, they will return to Beijing for a function at the Australian embassy today and share a meal with some of the Chinese players they competed against.

Pinkewich is taking his table tennis paddle with him in case he can get in a few matches with his old rivals.

“We had three great matches in China. You know, we’re used to 20 to 50 people in Australia watching tournaments. Our first match in Canton, now Guangzhou, I think it was a crowd of 8,000 people,” he recalls.

“There’s this one table in the stadium and we went out there, we actually had a win. We won 5-4. It was fantastic.

“I think friendship was more important than competition.”

The Australians suffered a narrow defeat in the second match in Shanghai. The third and final match was played in the Chinese capital. At the May Day celebrations that followed, the team was invited to the Great Hall of the People to meet Zhou.

According to the Sun-Herald report from the journalist travelling with the team, the premier asked Knapp about his long hair and sideburns.

“Do you wear this hair because of your disagreement with society or because it is a style?”

Knapp replied, “It is the fashion.”

The Sun-Herald’s front-page story on the team’s visit.
Author provided

Pinkewich says he will never forget the sound of the crowds during the tour.

“Can you believe, one table in the middle of the Capital Stadium [in Beijing] with 18,000 spectators, and that was just an amazing experience. We got trounced 8-1 that night. But they always let the woman win.”

That woman was Anne Middleton, the other player on the 1971 tour, who has since passed away.

Leading the delegation were the then-president of Table Tennis Australia, John Jackson, who is now deceased, and coach Noel Shorter, who at 85 is not making this week’s commemorative trip.

Shorter remembers getting everything packed up from their coaching clinic in Tokyo with only four hours’ notice after being told there had been a change of plans and the team was heading later that day to China.

“At that time the [Australian] government was quite racial, as far as the Chinese were concerned, and they didn’t show any interest at all,” Shorter recalls.

“It’s funny. After the trip we were labelled as communists […] but we were interested in friendship first, competition second.”

Noel Shorter (left) shaking hands with Chinese Premier Zhou Enlai in 1971.
Noel Shorter

Why sport diplomacy matters

Beijing has continued to use sport as a diplomatic tool, including becoming the first city in the world to host both a summer and winter Olympic Games (Beijing in 2008 and 2022).

French educator Baron Pierre de Coubertin founded the International Olympic Committee in 1894, believing Olympics were a global event. “All people must be allowed in, without debate,” he said.

That ethos is facing major challenges today as a new global rift emerges between the West and autocratic regimes like Russia, China and others. A new term has also emerged in recent years – almost always applied by researchers in democratic nations – to describe undemocratic nations’ forays into global sport: sportswashing.

Read more:
Can China use the Beijing Olympics to ‘sportwash’ its abuses against the Uyghurs? Only if the world remains silent

Viewed through today’s lens, China’s invitation to the Australian team five decades ago would most likely be reported as an attempt by the Communist Party to use sport to wash its image.

But without that young Australian sports team breaking down barriers by travelling to China, who knows how different Australia’s current economic and cultural landscape would be?

China’s current ambassador to Australia, Xiao Qian, has described the relationship between the two nations as “half a century of storms and sunshine”.

The Chinese ambassador to Australia, Xiao Qian, speaks to media at the embassy in Canberra.
Lukas Coch/AAP

His comments are included in a book published by the Chinese embassy, titled Fifty People Fifty Stories. It details the experiences of dozens of Australians who have at one time lived and worked in Beijing.

“The relationship between China and Australia has become more mature, stable and resilient,” Xiao writes. “Amity between people holds the key to sound relations between countries.”

At the heart of such amity, sport continues to play a significant role.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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China

European Business in China: Key Insights from the EU Chamber’s 2024/2025 Position Paper

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The EU Chamber’s Position Paper 2024/2025 highlights challenges faced by European businesses in China, including economic slowdown and regulatory compliance. It offers recommendations for policy reform, bilateral cooperation, and emphasizes the need for consistent regulations to enhance investment attractiveness amidst uncertainty.


In our overview of the EU Chamber’s European Business in China Position Paper 2024/2025, we delve into the key challenges European businesses face amid China’s slow economic recovery and regulatory uncertainties. The Position Paper highlights significant issues, including economic slowdown, overcapacity, and regulatory compliance difficulties, while providing targeted recommendations for policy reform and enhanced bilateral cooperation. The report emphasizes the need for consistent policy implementation and clear regulatory guidelines, while advocating for proactive EU engagement and strategic adjustments by European companies to navigate the evolving market landscape effectively.

On September 11, 2024, the European Chamber released its annual European Business in China Position Paper 2024/2025 (the “Position Paper”), addressing the growing challenges faced by European companies operating in China.

Drawing on insights from over 1,700 member companies and 35 working groups, the Position Paper offers comprehensive recommendations to improve the business environment. It outlines the increasing difficulties European companies are encountering and proposes key areas for policy reform.

While European companies remain invested in China’s success, the growing risks associated with operating in the country are making it increasingly difficult to justify further investments.

Below we explore the key challenges European companies face and the EU Chamber’s recommendations for making China a more attractive destination for European investors.

In 2024, European companies are contending with a sluggish economic recovery in China. According to the Position Paper, China’s growth has hit historically low levels. The weaker-than-expected post-COVID rebound has significantly dampened business confidence, with the automotive sector, for example, experiencing reduced demand and slower sales compared to pre-pandemic times. This economic slowdown has made long-term investments and strategic planning more challenging.

China’s recent economic policies, including substantial investments in manufacturing and green technologies, have led to notable overcapacity. The Position Paper points to the solar panel industry as a prime example, where the surge in production has created a surplus that outstrips domestic demand.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

Read the rest of the original article.

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Business

Yutong, China’s Leading Electric Bus Manufacturer, Showcases New Technology Amidst Rising Exports

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Yutong Bus launched a technology platform to enhance electric bus efficiency, increasing driving range by 10% and cutting costs by 20%, during Australia’s National Bus and Coach show.


Yutong Bus Introduces New Technology Platform

Yutong Bus, the largest electric-bus manufacturer globally, has launched a new technology platform aimed at enhancing driving ranges and reducing operational costs. This initiative comes as the company advances its position in a growing market driven by the decarbonization of public transport fleets worldwide.

Based in Zhengzhou, China, Yutong presented its platform during Australia’s National Bus and Coach show in Brisbane, highlighting four new electric buses. The platform combines software and hardware advancements to enhance the safety, reliability, and efficiency of its commercial electric vehicles.

In collaboration with battery partner CATL, Yutong plans to boost driving range by 10% while lowering operating costs by 20%. New batteries can fully charge in just 2.5 hours, while long-distance coaches can achieve a 50% charge during driver breaks in only 30 minutes.

Source : China’s world-leading electric-bus maker Yutong touts new tech as exports grow

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