China-Australia relations: made-in-China Penfolds wine to bypass Beijing’s tariffs

Treasury Wine Estates will release its first Penfolds wine made in China for the domestic Chinese market in the second half of 2022

China officially applied duties of between 116.2 per cent and 218.4 per cent on Australian wines in containers of up to two litres in March 2021, until 2026

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Treasury Wine Estates is taking advantage of China’s wine region (pictured), and later this year will see the release of its first made-in-China wine for the domestic market. Photo: Penfolds

Published: 4:15pm, 19 May 2022

Hard hit by China’s high import tariffs, an Australian wine company has found a novel way to bypass the added costs: made-in-China wine.

In the second half of this year, Treasury Wine Estates intends to release its first Penfolds wine made in China for the domestic Chinese market, the company confirmed on Wednesday.

The first trial wine will be made from grapes sourced in the northwest Ningxia Hui autonomous region and “will feature in the initial, modest-sized allocation for distribution to local consumers”.

China officially applied duties of between 116.2 per cent and 218.4 per cent on Australian wines in containers of up to two litres from March 2021 to 2026, following anti-dumping investigations – moves that have severely affected the once-lucrative market that had been so heavily tied to China.

We’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality

Tim Ford

“China is an emerging fine winemaking region, and we’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality,” Treasury Wine Estates CEO Tim Ford said.