China: Key Developments in History

Question 1

China: History 618-907 CE

Answer 1

references to grape derived alcohol in the poetry of the Tang Dynasty
-moderne chinese wine Industry dates to the 19th centrury
-Zhang Bishi( business man and consul) imported 150 V. vinifera varieties into china
- founded the Changyu Winery in Yantai ( Shandong)
- due to political events the industry did not really start until the 20 th centruy

Question 2

China: 1980’s

Answer 2

• expansion only really began in the 80’s when the People’s rebublic opened to internatioanl development
  -CITIC , foreign investement arm partnered with the french government and Remi Martin to create the Sino-French Winery in Huailai ( near Beijing)
  -Also Pernod Ricard formed a joint venture for a new Chinese brand called Dragon Seal
  -French involvement incl. LVMH in Ningxia Province, remain a strong influence

Question 3

China: 1990’s

Answer 3

• wine industry encouraged by the Chinese governemnt in 90’s to replace cereal based spirits with wine and fruit based drinks
• Health campaign and shortage of grains

Question 4

China: Vineyard -Grape production

Answer 4

-only 10% is for wine and the rest is for table grapes , both fresh and dried which command higher returns for growers
- culutre is to gift fruit as a premium gift

Question 5

China: Anti-extravgance

Answer 5

• currently experiencing a rationalization in the era of the President Xi Jingping and his ‘anti-extravagance’ measures
• Chinese wineries can no longer rely on gifting their production to government officials
• now shifting to consumers
  -most wineries in Ningxia were established in the 2000’s to support the government - and also accepting government support to expand rural areas