China's Wine Market Dries Up, Leaving Global Winemakers Reeling

Reduced demand from China is forcing vineyard owners from Bordeaux to Australia to rip up vines and leave grapes to rot in the fields. | World News

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In a devastating blow to the global wine industry, China's crackdown on festive drinking has led to a collapse in wine sales, forcing vineyard owners to rip up vines and leave grapes to rot.

As part of a broader austerity drive, Beijing has banned the consumption of alcohol at government and Communist Party events, leaving Chinese officials afraid to flout the rules.

Wine imports have plummeted, with Chinese buyers now purchasing half the amount of foreign wine they did in 2018, when imports reached nearly $3 billion.

Winemakers from Bordeaux to Australia are struggling to cope with the loss of their lucrative Chinese market, with some forced to uproot vines and cut costs by hiring fewer workers.

Chinese consumers, once eager to buy foreign wine, are now associating it with business deals and official banquets, hurting its cool factor.

As a result, wine regions are being pushed to the brink, with some facing a glut of wine and others forced to abandon their vineyards.