China's winemakers urge probes on EU imports
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E-mail China.org.cn, August 20, 2012
Domestic wine producers demanded the Ministry of Commerce (MOC) to conduct investigations into the impact of European imports on China's domestic market in a recent application filed with the ministry.
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EU wine imports surged to 169,114 kiloliters, in 2011, from 35,944 kiloliters, in 2008, at an annual pace of 67.71 percent. [File Photo] |
The increasing amount of EU imports has become a concern of almost every Chinese winemaker, according to Wang Zuming, head of the wine division of the China Alcoholic Drinks Association.
EU wine imports surged to 169,114 kiloliters, in 2011, from 35,944 kiloliters, in 2008, at an annual pace of 67.71 percent.
In the past four years, European market share in China increased from 4.94 percent to 14.76 percent, Wang said.
The EU has provided various subsidies to the wine industry, putting Chinese makers at a disadvantage, Wang added.
Due to the EU's producing capacity and export potential, Wang argues that this can only have a negative impact on winemakers in China.
The EU is the world's largest wine-producing region with an annual output reaching around 16 million tonnes, or 69 percent of the world's total.
Winemakers from the EU see the Chinese market as having huge potential.
China's wine consumption surged 28.26 percent to 1.55 million kiloliters in 2011, overtaking the United Kingdom to be the fifth largest market, according to data provided by industry. Imported wines accounted for nearly one-third of the market, up from less than 10 percent in 2006.
As foreign wine merchants tap into the Chinese market, local winemakers are starting to feel the pressure. The industry's average gross margin slipped to 30 percent from around 40 percent, said State-level Wine Appraisal Judge Sun Fangxun.
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