Why China could be fine wine’s next success story

From award-winning Chardonnays to ambitious export plans, China’s wine industry is shedding old stereotypes and building a reputation for premium quality. As curiosity grows at home and abroad, producers are positioning themselves as the next major force in fine wine. Amelie Maurice-Jones reports.

 

In April, China’s wine industry shot into the spotlight at the Wynn Signature Chinese Wine Awards in Macau. 35 trophies were dished out at a ceremony at Wynn Palace Macau, with Amethyard Petit Manseng Sweet White Wine 2024 taking home the ultimate title, ‘Best Wine in China’. 

The past decade has seen China shift from volume-driven production to premium winemaking, as consumers look to trade up. As quality climbs, so does the wines’ global reputation. The third chapter of the Wynn Awards testified to a region on the up – celebrating diverse terroir, impassioned winemakers and, most importantly, what ends up in the glass.

“The level of sophistication, technical excellence and dedication among Chinese winemakers today is astonishing,” the competition’s chairman Eddie McDougall tells the drinks business. He largely attributes this to a generation of Chinese winemakers returning to the country armed with both international perspective and local knowledge of local terroir. 

Challenges and how to surmount them

It’s the diversity of that terroir – spanning from the high-altitude terraces of the southwest to the coastal microclimates of the east – that will come to define the future of Chinese wine. Asked what regions are particularly on his radar, McDougall notes Shandong, a coastal province in eastern China. He’s optimistic for the future of the region’s elegant white wine production, particularly along its maritime coasts. Then, there’s Xinjiang, in the far northwestern corner of China, where he flags potential for high-quality sparkling wine and structured reds.

It goes without saying, however, that China’s winemakers are struggling with the same challenges facing the global wine trade – namely, complex macroeconomic conditions, managing logistics and a drop in alcohol consumption. 

They also face unique obstacles. Stereotypes surrounding Chinese wine still stick, and the world needs to catch up in cottoning on to its quality: “Most consumers outside of Asia haven’t yet had the opportunity to taste the quality coming out of China today,” McDougall explains. That’s reflected by comments of Michael Palij MW, who previously told db of his “pleasant surprise” at the quality of bottles from the region, only shaking off “bigoted prejudices against what China producers” after judging its wine in competitions. 

Winning over curious consumers and collectors

And as the global wine market continues to shift, McDougall believes “a natural space is opening up for agile, high-quality, boutique Chinese wine brands”. He adds:  “The landscape of fine wine distribution is shifting, and it is an incredibly exciting time for adventurous collectors.”

Just Wong, executive director of beverage operations at Wynn Macau and Wynn Palace, believes the fine dining sector holds the key to Chinese wine’s future. At his venues, Wong says an increasing number of Chinese guests are being wooed by the quality of local wine.

While Bordeaux and Burgundy still remain king at the dinner table, requests for Chinese wine are on the up – and not just to pair with Chinese cuisine, but also with international fare, like steak or Japanese dishes.

Interest on the up

Chinese wine imports have shrunk dramatically by 70% since 2019. In some ways, Chinese wines have an edge over their international counterparts – namely that they’re “easy for Chinese consumers to understand”, thanks to familiar geography and labels written in Hanzi, which makes choosing and buying bottles more accessible for the local guest. 

On the other hand, Wong is also seeing curiosity in local wine from guests from all over the world. “It’s a new region coming out in the world stage of fine wines, and people are just getting more and more interested in that,” he adds.

When asked what bottle he’d pick to win round a sceptic, McDougall struggles to settle on one. After some debate, he plumps for Chateau Nine Peaks ‘Qi’ Chardonnay from Shandong or Xiao Ling Chardonnay from Yunnan. “They are delicious, highly collectible, investment-grade, and in massive demand,” he explains. “They represent the absolute peak of what modern Chinese viticulture can achieve.”

What does the future hold?

The past 10 years, for McDougall, has seen Chinese wine improve at a velocity that has completely defied global expectations. So what does the next decade hold?

According to Wong, many Chinese winemakers are raring to export overseas – to combat the challenges of declining consumption in China. The increasing number of domestic producers on ASC Fine Wines’ portfolio, including Penglai winery Longting, shows that this process is already underway.

However, as producers look to go global, it won’t always be easy. “Chinese wineries are not very familiar with the international market, so they need a lot more guidance,” he says. “Need different distributors and associations linking them up and trying to bring them to international events, exhibitions, different events that will put them on the world stage.”

Hopes for continued growth

But for McDougall, China holds a unique bargaining chip – “the sheer momentum of curiosity”. 

“The domestic and international appetite to learn about, taste, and list premium Chinese wine is growing at an exponential rate,” he says. “The speed of adoption and the industry’s collective intention to elevate Chinese viticulture are far outpacing any other emerging wine region I have observed over the past decade.

“The global fine wine industry needs to pay close attention to this rapid evolution.”

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