Weekly digest: Xi Jinping making rare wine trip to Ningxia

Welcome to our China Wine Market Briefs, a new section created by Vino Joy News to bring to you the latest and essential readings on what’s happening in Chinese wine industry reported in Chinese and English language press.

Market Watch

Chinese president Xi Jinping made a rare trip to visit Ningxia in northwestern China, considered a premier wine region. This is Xi’s first official domestic trip after the “Two Sessions”, the most important political event on China’s political calendar. President Xi reportedly visited Ningxia’s Hong Shi Bao district, a sub wine region with 28 wineries. He also visited Zhi Hui Yuan Shi (志辉源石) winery located near Helan mountains in Yinchuan, a US$28 million winery founded in 2008 on an old quarry site. The president stressed that “as Chinese residents’ living standards improve, the prospect for wine industry is very bright,” which could be interpreted by industry insiders as “a shot in the arm” for afflicted Chinese wine market, hobbled by pandemic and the country’s slowing economy. While visiting a vineyard in Yinchuan near the Helan Mountains, Xi again underpinned the importance of developing Ningxia wine industry as a way to combat desertification and preserve environment. He said Helan mountains is a crucial shields for ecological security in the northwestern part of China. He called for resolute measures to strengthen the ecological conservation of the mountains. The trip, largely symbolic should also be watched with extra attention especially at a time when there seems to be a national drive to push for Chinese consumers to drink more Chinese wine. Ningxia, backed by Central and local government, is home to 211 wineries and produces around 130 million bottles of wines a year, according to official data.

China unveils plans to make Hainan a free trade port like Hong Kong. China has unveiled a basket of plans that aim to turn the island province Hainan in southern China into a free trade port similar to Hong Kong. The plan which was reportedly “personally” designed by president Xi Jinping will offer duty-free treatment for most goods and commodities, a 15% cut on income tax for selected individuals and companies, and relaxed visa requirements for foreign tourists and professionals. The island which is a popular vacation destination, is expected to become the country’s biggest free trade port. One key feature is that some selected list of imported goods will be exempted from import duties. It’s not clear if wine will be included in the list yet. More details on the Free Trade Port proposal can be found here on China Briefing website.

Chinese premier Li Keqaing is giving new life to China’s street vendor economy to empower vendors and hawkers amid slowing economy. Street vending was once suppressed in the country for urban development but is getting renewned support as the country faces increasing unemployment due to the pandemic. Wine merchants are also answering the call. A few are rolling out tracks and carts to peddle cheaper bottles priced around RMB 100 a bottle or less, as Chinese wine media WBO reported.

Bruto, an online-shop dedicated to selling organic, biodynamic and natural wine is launched in China. The shop claims to be the first e-commerce in China dedicated to promoting sales of organic and natural wines.

Travel restriction

Hong Kong government has announced the extension of travel restrictions for international arrivals until at least September 18. All passengers arriving by air from any location other than mainland China, Macau, and Taiwan will be required to go through a 14-day mandatory quarantine. Hong Kong residents and non-Hong Kong residents arriving from mainland China, Macau, or Taiwan with no travel to any overseas countries and regions in the past 14 days will be subject to a 14-day compulsory quarantine until July 7.