The Strategist

China sets to squeeze France out of the wine market


06/22/2021 - 04:14



China wants to turn its main wine-producing region, Ningxia, into a rival to France's Bordeaux, squeezing the country out of that market, CNBC writes.



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ah beng tan
The region is set to produce 600 million bottles worth 20 billion yuan ($3.12 billion) by 2035. "If this target is achieved, Ningxia will become an important and influential producer worldwide, comparable to the scale of Bordeaux," said Director of international cooperation at China's Ministry of Agriculture.

Ningxia is just one of several wine-producing regions in China. The target is to more than quadruple the region's annual wine production, comparable to that of the wine capital of France. Last year Bordeaux produced 522 million bottles worth €3.5 billion ($4.16 billion).

Last year, wine exports from Ningxia rose 46.4 percent to 2.65 million yuan (about $414,000). The main buyers are the United States, the European Union, Australia and Japan. Overall, China ranks sixth in the world in wine consumption and tenth in production in litres.

Earlier it was reported that wine production in France was threatened by cold weather in Europe. The damage caused by the frost could cut production by a third, with losses estimated at €1.5-2 billion ($2.4 billion).

source: cnbc.com




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