Industrial Policy, Planting And Brewing To Improve The Competitiveness Of Chinese Wine

Recently, the "14th five year plan" guidance for China's liquor industry was released at the China International Wine Expo held in Luzhou. Song Shuyu, chairman of the China Liquor Association, said in interpreting the draft that the economic policy recommendations include the abolition of domestic wine consumption tax and the reduction of value-added tax. He pointed out that the wine industry in the world is a kind brewing industry, that is, planting and brewing are highly compatible. However, this is not the case in China. He hopes that during the "14th five year plan" period, wine related industrial policies will make a breakthrough.

On March 26, the Ministry of Commerce announced the final ruling of the anti-dumping and countervailing investigation on the imported wine from Australia: the anti-dumping duty shall be imposed on the wine originated from Australia from March 28, 2021. The anti-dumping duty rate of each company is 116.2% - 218.4%.

In Song Shuyu's opinion, both of them involve whether Chinese wine can participate in fair competition. After the Ministry of Commerce announced the ruling results, song Shuyu received an exclusive interview with the 21st century economic reporter.

He said that during the 13th Five Year Plan period, the impact on domestic wine was the biggest. Of course, this has something to do with the weak industrial base and the acceptance of the consumer market. However, industrial policy has more influence on the future development of domestic wine. He hopes to promote the integration of planting and brewing, and let wine be used as agriculture, so as to provide support for industrial poverty alleviation and high-quality development of local economy and characteristic industries.

He said that China has a long history and culture of wine making, which can be traced back to 9000 years ago. But for thousands of years, the ancestors did not pay much attention to fruit brewing, including wine, and developed more grain brewing, that is, grain wine. But more than 100 years ago, Changyu company and Beijing longhui Wine Co., Ltd. began to make wine. With the improvement of people's living standards and the demand for diversified consumption of fine wine, wine has been developed all over the country many years ago, and has been produced in Xinjiang, Ningxia, Gansu and other places.

Through the brewing practice, experts found that Chinese customs can make good wine. Most of the wine grape growing areas in China have high latitude, low temperature, few coastal production areas and many continental climate conditions. Many international grape varieties perform very well in China.

"But our industrial policy is not unified." Song Shuyu explained that planting grapes and brewing grapes are separate. Most of the wine produced in the world is the combination of planting and brewing. One of the biggest advantages of the integration of seed and brewing is that the international agricultural policy subsidies support. China does not combine seed brewing with brewing.

"We also have a major discovery: in areas where wine grapes are well planted, soil and climate conditions are very suitable for grape planting, and are also areas with good industrial poverty alleviation. For example, many places in Ningxia and Xinjiang have great potential to meet market demand in the future. In the future, if we want to participate in international competition, we need to make policy breakthroughs to improve the competitiveness of Chinese wine and help the industry develop better. " Song Shuyu said.

When it comes to launching a "double anti" investigation on Australian wine imports, song Shuyu said that the "double anti" is first and foremost against unfair competition. Australian wine has a very large share in China, ranking first. It has a large import volume and enjoys a lot of policy subsidies from Australia. The final result is that its low-price dumping has a great impact on China's wine industry and there is unfair competition. The Chinese Wine Association sued on behalf of the domestic wine industry and demanded to start a "double anti" investigation against Australia.

Secondly, the "double anti" has brought opportunities for the development of China's grape wine industry.

Song Shuyu said that after the "double anti" ruling of the Ministry of Commerce came out, from the perspective of the domestic market, whether Chinese wine enterprises can seize this opportunity is uncertain in the future, because the "double anti" results have timeliness, which is only a phased positive for domestic wine. How to seize the opportunity and strengthen the internal strength is the problem that domestic wine enterprises should think about.

Whether it is a breakthrough in the industrial policy to promote the integration of seed and wine, or to sue Australian wine companies for "double anti", song Shuyu said that it is the responsibility and obligation of the industry organizations to stand in the perspective of China's wine industry and to promote fair competition in the market.

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