Penfolds, Australia’s leading wine brand, will begin sourcing and producing wine in China to avoid the unfavorable tariffs imposed by Beijing.
Penfolds has a history of 178 years and is one of Australia’s oldest wineries. Like many other local exporters, the company was hit by tariffs of 107.1-212.1% as part of the Chinese Communist Party’s ongoing trade war against Australia.
This move came in retaliation for a request from Foreign Minister Marie’s Payne to investigate the origin of COVID-19 independently.
Australian companies are working to diversify trade from China to mitigate losses from trade wars. Wine exports have increased significantly across Asia, including Singapore (+ 108% from 2021 to A $ 166 million) and Hong Kong (+ 45). Percent to $ 191 million), South Korea (74% to $ 47 million), Taiwan (65% to $ 31 million), Thailand (31% to $ 28 million).
Evidence also suggests that Chinese importers have avoided CCP tariffs simply by purchasing popular Australian wines from these markets, especially Hong Kong.
However, Penfolds has determined that the best approach to maintaining market share in China is to produce wine locally.
Tim Ford, CEO of Penfolds’ parent company Treasury Wine Estate, said:Said Australian person newspaper.
“China is an emerging fine wine producing region and we are confident that we can produce premium Chinese Penfolds that maintain a unique Penfolds home style and uncompromising quality.”
Meanwhile, the Australian Government is still taking two actions by the World Trade Organization against China over tariffs on wine and barley.
According to Peter Draper, Managing Director of the Institute for International Trade at the University of South Australia, it will be difficult to get a true resolution. However, the Australian Government is most likely using the platform to reveal Beijing’s actions and actions.
“As they say,’Nikko is the best disinfectant.’ In this case, I think the Australian Government is aiming for that,” he told The Epoch Times earlier.
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Daniel Y. Teng is based in Sydney. He focuses on national politics, including federal politics, COVID-19 response, and relations between Australia and China. Do you have a hint? Contact him at [email protected]