Chinese American entrepreneurs to build ‘China’s Napa’ with US$72m

A delegate of Chinese American entrepreneurs will be pumping RMB 500 million (US$72.8 million) into turning a small town in China’s central Hubei province into ‘China’s Napa Valley’.

Xishui county in Hubei province (photo credit: Hubei government)

According to Chinese media reports, the delegate led by Chinese American business Chan Tianqing have signed a memorandum with Hubei province, which will see the entrepreneurs investing RMB 500 million in Xishui County for construction of ten vineyards measuring 5000 mu (333.3 ha), with the purpose of “replicating California vineyards” within China.

Xishui County, a small town by Chinese standard with 1.08 million people, is located at 30°N latitude. Close to the province’s capital city Wuhan, Xishui is said to have a favourable natural environment and sound infrastructure for transport and logistics.

According to Chan, a team of experts on winemaking and viticulture will visit Xishui for technical support.

The mega wine project is set to become a Disneyland for wine, with entertainment and wine culture exhibition facilities planned, in addition to vineyards and wineries. The timeline for the project, however, has not been revealed.

The news comes at a time when the Chinese government has slapped an additional 10% import tax on American wines as the trade wars between the world’s two biggest economies escalates.

The new punitive tax came into effect on 24 September, and it brings the total taxes levied on American wines to nearly 80% compared with the usual 48%.