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Government of South Australia - Department of State Development

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    6th Sep 2024
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    Trade and Investment

    China visit insights: spotlight on wine

    China is South Australia’s largest two-way trading partner, with merchandise exports valued at $4.23 billion to July 2024, up 48 per cent year-on-year, and the highest on record.

    This growth comes on the back of stabilisation in the Australia-China relationship over the past two years and gradual removal of Chinese impediments – tariffs and other restrictions – on Australian imports.

    The impact of those trade impediments was even more acute in South Australia than other jurisdictions given our export profile.

    To manage risk and reduce reliance on any one market, DSD has over the past three years implemented a range of programs and initiatives to support export diversification.

    At the same time, it’s important to re-engage with the China market in a risk-managed way, and to build resilience in the South Australia-China relationship.

    The South Australian Government’s visit to China, led by Minister for Trade and Investment Joe Szakacs, last month, was part of a program of re-engagement that has included visits in the past year by Premier Malinauskas, Governor Frances Adamson, and the Minister for Primary Industries and Regional Development.

    The objectives for the visit were to continue to position South Australia as a reliable partner for China in food security and decarbonisation, and to reinforce the importance of our extensive people-to-people relationships.

    The visit explored China’s two largest commercial centres—Guangzhou and Shanghai—as well as Hong Kong to advance trade and investment relationships.

    The trip also coincided with the Wine Australia China Roadshow, marking the first major wine trade mission to China since the removal of tariffs on Australian wine in March 2024.

    The visit featured the launch of the South Australian Regional Heroes – Diverse and Distinct Wine Masterclass and a tour of the Roadshow, highlighting wines from nearly 30 South Australian producers.

    As our wine sector re-engages with the China market, DSD is working with industry to build connections, showcase our product, and equip South Australian exporters to re-enter the Chinese market.

    DSD, together with PIRSA and the South Australian Wine Industry Association, is delivering the $1.85 million Wine Exporter China Re-Engagement Support Package, announced in March following China's decision to remove all trade barriers on Australian wine.

    The support package includes capability building for wine exporters seeking to engage with Chinese partners, two-way market activations, marketing campaigns, and technical cooperation in the wine sector.

    As part of the support package, DSD has appointed a dedicated Senior Wine Export Adviser, based in Shanghai, to support our exporters entering and navigating the Chinese market, and to provide up-to-date, actionable insights on market trends, opportunities, and challenges.

    Ms Emily Xu has worked within the Chinese wine sector for the past 10 years and will support our local wine industry with on-the-ground market intelligence and trends, connecting with key importers, distributors and industry stakeholders.

    Since tariffs were lifted, South Australia’s wine exports to China have rebounded quickly – up by more than 9,000 per cent to $371 million in only a four-month period.

    While impressive, this rapid export growth has likely included significant re-stocking of product by major importers.

    It will take some time for this to translate through to retail sales and on-premise consumption in the market, and we expect growth rates to moderate.

    We’ve seen some early wins for smaller, premium South Australian wine producers getting back into the market, but there is plenty of hard work ahead.

    The South Australian Government’s visit was another important step on the path of re-engagement with our largest export market, particularly for South Australia’s world-leading wine industry.

    Learn about the Wine Exporters China Re-Engagement Support Program

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