Australia’s leading wine authority to close office in China as exports plunge
Lin Tiangui is a Winston Wine representative and looks at wine bottles made from Winston Wine’s Australian winery in one of their stores in Shanghai on October 18, 2011.
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After sales to greater China, Australia’s most important wine industry organization Wine Australia will close its China office. succumb to Beijing’s prohibitive duties.
Wine Australia is closing its Shanghai branch. Wine Australia spokesperson said that the decision was made after extensive consultations with Australian wine and grape sector representatives. It is also based on current market opportunities and the environment in which they operate.
Wine Australia will maintain its brand presence in China through our social media channels that are consumer-facing and wine trade, as well as working closely with trade reps in China on marketing and brand building campaigns.
The trade worth 1.2 billion Australian dollars per year ($830m) was reduced to just over AU$200m at March’s end, a result of tensions between the countries.
Wine Australia stated that it would continue its operations in China just like it did in the other markets. This will be done through relationships with “key in-market agencies and marketing partners as well as trade show organizers, education networks, and key market agency personnel.” A format which is more common for small trading markets.
It is charged with supporting Australia’s wine sector through research, development and the establishment of new export markets.
In 2020, the once lucrative Chinese trade was halted by Beijing’s investigation of claims that cheap Australian wines were being dumping in China.
Beijing then imposed antidumping duties of between 116.22% and 218.54% on Australian wine, making it uncompetitive for the Chinese market. This matter is currently being arbitrated by the World Trade Organization.
Anti-dumping duties and anti-subsidy duty are protectionist tariffs imposed by governments on imports below their fair market value. They usually have lower prices than the domestic markets of exporting countries.
China placed a number of trade restrictions, including punitive tariffs on Australian exports. These included barley and coal as well as lobsters.
These restrictions included many that were not formalized after Canberra demanded an independent investigation into the source of the coronavirus. This was done without consulting Beijing.
Australia’s national association of wine producers, Australian Grape and Wine, said the closure of the Shanghai office did not signal “an end to an era.” The association noted that, despite all the difficulties faced by exporters, they would love to return to China and Chinese consumers continue to demand Australian wines.
Lee McLean of AGW stated, “We fully support Wine Australia’s decision. It is based upon operational requirements.”
“We note also that China is continuing to demand Australian wine and hope Chinese customers will once more have access to Australian wines.”
Australian wine exporters faced difficulties in China following the impositions of duties. Wine Australia data for March shows that. While they were able to divert sales to the U.S. market and U.K. after the duties were imposed, there are still pandemic-related issues such as disruptions in global supply chains and disrupted freight routes.
The U.K. now holds the number one spot for Australia’s exports of wine, surpassing China. But that is only half of China’s market.
Australia exports 60%, China accounts for the remaining 40%. These exports account for approximately 40%.
There have been signs that the relationship between Australia’s two largest trading partners has improved in the last few weeks since the election of an Australian Labor government.
Earlier this month, Australia’s new defense minister, Richard Marles, and China’s defense minister, Wei Fenghe, met on the sidelines of the Shangri-La Dialogue in Singapore, also known as the “Asia Security Summit.”
Prior to that, no bilateral ministerial meetings or talks had taken place between them for many years.
According to political observers, Marles’ address at the summit suggested that Canberra had changed its tone toward Beijing. Marles used less aggressive rhetoric to acknowledge the rise of China, but also framed it as the responsibilities associated with it. Nick Bisley, professor of international relations at La Trobe University wrote in an opinion pieceThis week.
After Anthony Albanese’s win in the Australian federal election in May, Chinese Premier Li Keqiang sent an encouraging message to him. He also received “an appreciation” letter.