Only three months ago, customers in China drank 50% of Australian red wine exports. By January, that was down to 1%, because of China’s tariffs of 200% or more on Australian wine.
Australia’s largest wine producer has decided to leave the head of its new premium division in Shanghai. They are also planning to export wine to China from their US subsidiary, and even make some from scratch in China.
Most of the discussion about the China trade problems has focused on Australia being punished for various decisions ranging from the Huawei ban to the Covid-19 inquiry. But an academic study suggests that exporters have to understand the drive in China towards domestic food security and import diversification as well.