Chinese Premier Li Qiang made a historical visit to Australia’s popular winery Penfolds, raising hope that Australian wine exports to China could soon bounce back to AU$1 billion before relations soured.
Social media updates from Treasury Wine Estates, Penfolds’ parent company, showed that CEO Tim Ford and Penfolds Managing Director Tom King hosted Premier Li at the vineyard.
The visit also included welcomes from South Australian Premier Peter Malinauskas, Australian Trade Minister Don Farrell, and Foreign Minister Penny Wong at the Penfolds Magill Estate, guided by Chief Winemaker Peter Gago.
According to Xinhua, China’s state media, Premier Li arrived at Adelaide Airport on a chartered flight on the afternoon of June 15 to begin his official visit, the first for a Chinese premier to the country in 7 years. On June 17, Li attended met with Australia’s Prime Minister Anthony Albanese.
Speaking to media and guests, Li said, “I sincerely hope that through my current visit I will work with you to build a more mature, stable, and fruitful comprehensive strategic partnership between our two countries to deliver more benefits to our two peoples.”
With the trip, China has announced visa-free policy for Australians, which allow them to stay in China for up to 15 days visa free. Albanese in a speech stated that the relations between China and Australia have been “renewed and revitalised”.
The Advertiser, an Australian news outlet, reported that since the removal of punitive tariffs in late March, Australia has sold about AU$86 million in wine to China, with 350 wineries, mainly from South Australia, reentering the Chinese market.
Trade Minister Don Farrell noted that the upward trend in trade might allow wine trade between Australia and China to surpass the AU$1 billion mark once again.
Data from China Customs show that in 2019, China imported 140 million liters of Australian wine worth US$860 million, making Australia the largest wine supplier to China at the time.
Since late 2020, Australian wines gradually disappeared from the Chinese market due to anti-dumping issues until restrictions were lifted at the end of March this year. In April, China imported 462,500 liters of bottled Australian wine worth US$10.4478 million, as we have reported. Helen Sawczak,Senior Trade & Investment Commissioner–Greater China for New South Wales, remarked at the 2024 New South Wales Wine Greater China Roadshow that April’s sales to China had surpassed the total sales of the previous three years combined.
Despite the positive development, the Chinese wine market continues to struggle with low consumer demand and high inventory levels. Importers are enthusiastic about Australian wines returning to the market but remain cautious about purchase volumes and prices. The ability of Australian wine sales to continue their upward trend and rejuvenate the broader wine category, as seen before 2020, will require concerted efforts from both wineries and importers.
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