Australian wine pours back into China as tariff-free shipments surge to over US$10 million in April

With import tariffs removed for the first time in three years, shipments of Australian wine to China surged in April, with analysts expecting producers to jump back into the lucrative market “quite quickly”.

China imported US$10.4 million of wine from Australia in April, up from US$126,045 a year earlier, representing a roughly eightyfold increase, according to Chinese customs data. Imports by volume, meanwhile, increased more than sevenfold year on year to 462,518 litres (813,918 pints).

As a result, Australia’s share of China’s wine imports rose from 1.45 per cent in March to 10.52 per cent last month, making it the third largest wine supplier after France and Chile.

“If China totally removes its barriers, then all kinds of products can return to normal trading, especially red wine because the demand is so huge,” said Lu Xiang, a research fellow in US studies at the Chinese Academy of Social Sciences.

But while the two economies are “mutually beneficial”, concerns over Australia’s role in the Aukus security alliance with the United States and Britain remain, Lu added.

Before the restrictions, Australia had long been the leading supplier of wine to China, holding a 37 per cent market share in 2019.

“If relations [with Australia] are normal, then red wine will come back with a huge potential,” said Lu, with French wine often viewed as too expensive.

Last year, France dominated the Chinese wine market with a 49 per cent share valued at US$491 million. In April, its share stood at 46.7 per cent.

Stuart Orr, CEO of the College of Practice Professors in Melbourne, said that Australian winemakers have a resilient “stockpile” of wine, which unlike certain other products, could increase in value over time.

“The resumption of