{"id":11936,"date":"2018-04-22T06:29:27","date_gmt":"2018-04-22T06:29:27","guid":{"rendered":"http:\/\/www.lifeandnews.com\/articles\/?p=11936"},"modified":"2018-04-27T06:34:36","modified_gmt":"2018-04-27T06:34:36","slug":"how-chinas-winemakers-succeeded-without-stealing","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/how-chinas-winemakers-succeeded-without-stealing\/","title":{"rendered":"How China&#8217;s winemakers succeeded (without stealing)"},"content":{"rendered":"<p><span><a href=\"https:\/\/theconversation.com\/profiles\/cynthia-howson-145760\">Cynthia Howson<\/a>, <em><a href=\"http:\/\/theconversation.com\/institutions\/university-of-washington-699\">University of Washington<\/a><\/em> and <a href=\"https:\/\/theconversation.com\/profiles\/pierre-ly-145761\">Pierre Ly<\/a>, <em><a href=\"http:\/\/theconversation.com\/institutions\/university-of-puget-sound-3040\">University of Puget Sound<\/a><\/em><\/span><\/p>\n<p>Joint ventures between Western and Chinese companies are <a href=\"https:\/\/www.economist.com\/news\/finance-and-economics\/21740410-heart-disagreement-chinas-industrial-policy-americas-gripes\">in the news<\/a> over accusations \u2013 <a href=\"https:\/\/www.nytimes.com\/2018\/03\/22\/business\/china-trump-trade-intellectual-property.html\">including those of President Donald Trump<\/a> \u2013 that China uses them to <a href=\"https:\/\/www.nytimes.com\/2018\/03\/22\/business\/china-trump-trade-intellectual-property.html\">steal<\/a> intellectual property from foreign competitors in industries like cars and technology. <\/p>\n<p>Less well known, however, are the joint ventures between French and Chinese winemakers, which offer a notable counterpoint to this narrative of international rivalry \u2013 or foreign exploitation, depending on your perspective. <\/p>\n<p>Unlike for cars and electronics, there are no secret technologies in the making of wine. The <a href=\"https:\/\/wine.lovetoknow.com\/wiki\/Who_Invented_Wine\">millennia-old fermented drink<\/a> is primarily a product of the land where the grapes are grown. What differentiates the best from the rest is not proprietary technology but experience in combining agriculture, science and art.<\/p>\n<p>During research visits to China\u2019s major <a href=\"https:\/\/www.decanterchina.com\/en\/regions\/china\/\">wine regions<\/a> \u2013 from beach resorts in Shandong and Ningxia\u2019s rocky and arid landscapes to the lush mountains of Yunnan \u2013 we encountered a blend of local and foreign winemakers, farmers, wine scientists and local government officials, all committed to establishing local wines on the world stage. <\/p>\n<p>Winemaking succeeds on the back of such international collaboration. And in our experience, it\u2019s helping Chinese wine producers overcome their biggest obstacles to success. <\/p>\n<figure class=\"align-center \">\n            <img alt=\"\" src=\"https:\/\/images.theconversation.com\/files\/214823\/original\/file-20180413-570-1qxtq5o.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\"><figcaption>\n              <span class=\"caption\">Entrance of the 2014 International Wine Exposition in Yanqing, where hundreds of foreign and local wineries came to make their pitch.<\/span><br \/>\n              <span class=\"attribution\"><span class=\"source\">Cynthia Howson and Pierre Ly<\/span>, <span class=\"license\">Author provided<\/span><\/span><br \/>\n            <\/figcaption><\/figure>\n<h2>No secret technology to steal<\/h2>\n<p>China is currently the <a href=\"http:\/\/www.oiv.int\/public\/medias\/5479\/oiv-en-bilan-2017.pdf\">sixth-largest wine producer<\/a>, bottling 11.4 million hectoliters in 2016, just behind Australia\u2019s 13 million. China is fifth in terms of consumption. <\/p>\n<p><iframe loading=\"lazy\" id=\"0UFPC\" class=\"tc-infographic-datawrapper\" src=\"https:\/\/datawrapper.dwcdn.net\/0UFPC\/3\/\" height=\"400px\" width=\"100%\" style=\"border: none\" frameborder=\"0\"><\/iframe><\/p>\n<p>A few years ago, as <a href=\"https:\/\/theconversation.com\/chinese-vintners-are-winning-renown-as-wine-industry-soars-34474\">we explained<\/a> in The Conversation, China\u2019s wine industry was focused on overcoming the rising cost of labor, dealing with difficult climates and improving grape quality.<\/p>\n<p>Now, the biggest obstacles Chinese vintners have to overcome are the country\u2019s image problem and growing competition from foreign wine. And that\u2019s where the foreign ventures have proven so valuable.<\/p>\n<p>China has long had a reputation for <a href=\"https:\/\/www.forbes.com\/sites\/pamelaambler\/2017\/07\/27\/china-is-facing-an-epidemic-of-counterfeit-and-contraband-wine\/#7f6af3f35843\">counterfeiting and food safety scandals<\/a>. At the same time, the wine industry has become less protected from foreign competition after <a href=\"http:\/\/www.decanter.com\/wine-news\/exporting-wine-to-china-countries-384383\/\">bilateral trade deals<\/a> with countries such as Chile and Australia eliminated some tariffs. And although there are still such barriers in place with Europe (as well as the U.S.), Chinese wine lovers still <a href=\"http:\/\/www.decanter.com\/wine-news\/exporting-wine-to-china-countries-384383\/\">drink a ton of French wine<\/a>, despite the higher prices.<\/p>\n<figure class=\"align-center \">\n            <img alt=\"\" src=\"https:\/\/images.theconversation.com\/files\/214821\/original\/file-20180413-570-vgr0ki.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\"><figcaption>\n              <span class=\"caption\">The authors visit Guanlan Vineyard with owner Yanzhi Zhang, a Beijing wine importer and Bordeaux-trained winemaker who is building two wineries in Ningxia.<\/span><br \/>\n              <span class=\"attribution\"><span class=\"source\">Cynthia Howson and Pierre Ly<\/span>, <span class=\"license\">Author provided<\/span><\/span><br \/>\n            <\/figcaption><\/figure>\n<p>That has meant Chinese makers of premium wines have had to raise their game to compete with skilled foreign competitors. And perhaps ironically, some of those foreign rivals have been only too happy to share knowledge and skills. <\/p>\n<p>Unlike for cars, making good wine doesn\u2019t require proprietary technology. Any serious student can learn the techniques, whether they are traditional or cutting edge, by reading, <a href=\"https:\/\/www.youtube.com\/watch?v=a3kQWGBy7PQ\">going to school<\/a> or finding a mentor. Becoming a good winemaker requires experimenting with a range of tried and true methods, both in the vineyard and the cellar. There is no secret recipe, only hard work and problem solving.<\/p>\n<p>Such collaborative partnerships have been essential to helping China wine producers overcome the image problem and better compete.<\/p>\n<figure class=\"align-center \">\n            <img alt=\"\" src=\"https:\/\/images.theconversation.com\/files\/214822\/original\/file-20180413-587-1f97o1i.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\"><figcaption>\n              <span class=\"caption\">Chandon China\u2019s winery sits in the shadow of Helan Mountain in Ningxia.<\/span><br \/>\n              <span class=\"attribution\"><span class=\"source\">Cynthia Howson and Pierre Ly<\/span>, <span class=\"license\">Author provided<\/span><\/span><br \/>\n            <\/figcaption><\/figure>\n<h2>Enter the French<\/h2>\n<p>It might surprise readers that French Cognac producer Remy Martin was one of the first Western companies to form a joint venture in China, in this case with the city of Tianjin in 1980 <a href=\"https:\/\/www.nytimes.com\/1983\/11\/11\/business\/dynasty-without-tradition.html\">to set up a winery<\/a>. <\/p>\n<p>The French brought winemaking skills and, in exchange, got a foot in the door into a promising market for imported Cognac. The result, Dynasty Winery, is now <a href=\"http:\/\/www.agr.gc.ca\/resources\/prod\/Internet-Internet\/MISB-DGSIM\/ATS-SEA\/PDF\/6799-eng.pdf\">one of the largest<\/a> Chinese wine producers.<\/p>\n<p>Remy and other Western companies brought not only skills but also their brand name. Chinese wine enthusiasts \u2013 vulnerable to the same stereotypes Westerners have \u2013 might question how good a wine from an unknown domestic company might be. But if is made by a famous French wine group, whose wines they enjoy, they might give it a chance.<\/p>\n<p>While Dynasty is a mass market brand, other more recent French-Chinese partnerships have focused on developing premium wines. One involved LVMH and a state-owned enterprise in Ningxia, a poor province often hailed as China\u2019s <a href=\"https:\/\/www.jancisrobinson.com\/articles\/chinas-most-promising-wine-province\">most promising<\/a> wine region. In 2013, the French luxury conglomerate launched <a href=\"https:\/\/www.lvmh.com\/houses\/wines-spirits\/chandon-china\/\">Chandon China<\/a>, the latest offspring in the global <a href=\"https:\/\/www.ft.com\/content\/4d28842e-8829-11e3-8afa-00144feab7de\">Chandon family<\/a> of sparkling wine. <\/p>\n<p>Unlike in other sectors, such as clothing or electronics, Western winemakers are not in China to take advantage of low costs. Chinese wine is <a href=\"http:\/\/www.scmp.com\/magazines\/post-magazine\/article\/1879773\/legacy-peak-helps-lead-charge-chinese-wineries\">expensive to make<\/a>, due to the rising cost of <a href=\"http:\/\/money.cnn.com\/2016\/03\/17\/news\/economy\/china-cheap-labor-productivity\/index.html\">labor<\/a>, and, in some regions, the need to bury the vines to protect them from cold winters and dig them out every spring. <\/p>\n<p>Moreover, you can\u2019t outsource the production of wine to another country. Champagne can only be made in the Champagne region of France. Napa Valley wine can only be made in the Napa Valley. If a wine is made in China, it becomes Chinese wine. <\/p>\n<figure class=\"align-center \">\n            <img alt=\"\" src=\"https:\/\/images.theconversation.com\/files\/214595\/original\/file-20180412-540-1sjq0ll.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip\"><figcaption>\n              <span class=\"caption\">Wines from Treaty Port Vineyards, which occupies this Scottish-style castle in Moulangou village, Shandong, are available in the U.K. from The Real Wine Company.<\/span><br \/>\n              <span class=\"attribution\"><span class=\"source\">Cynthia Howson and Pierre Ly<\/span><\/span><br \/>\n            <\/figcaption><\/figure>\n<h2>Soaring wine quality<\/h2>\n<p>The result, for Chinese winemakers, has been soaring quality. <\/p>\n<p>Not long ago, really good Chinese wines were <a href=\"http:\/\/www.grapewallofchina.com\/2014\/07\/30\/triple-a-formula-for-china-wine-appetizing-affordable-available\/\">very hard to find<\/a>. Mass market wine brands, like Changyu, Great Wall or Dynasty, were ubiquitous in supermarkets and convenience stores around the country. But most award-winning boutique wineries you read about in the media were <a href=\"http:\/\/www.grapewallofchina.com\/2014\/07\/30\/triple-a-formula-for-china-wine-appetizing-affordable-available\/\">too small<\/a> or lacked marketing skills and deals with distributors that could put their wines in front of consumers.<\/p>\n<p>Today the best boutique Chinese wines are far more available in major cities because the major distributors have begun to <a href=\"http:\/\/www.grapewallofchina.com\/2015\/07\/14\/summergate-kanaan-sign-distribution-deal\/\">include<\/a> more Chinese producers in their porfolios of primarily imported wines. This has made the best Chinese wines available in local shops frequented by wine enthusiasts, like <a href=\"https:\/\/www.pudaowines.com\/eng\/buy-wines-spirits\/?special_4=1\">Pudao Wines<\/a> in Beijing and Shanghai, and on a few restaurant wine lists. <\/p>\n<p>At a hotel restaurant in Guangzhou\u2019s main airport in 2016, for example, we were able to order an glass of Pretty Pony, an <a href=\"http:\/\/awards.decanter.com\/dawa\/2016\/Wine\/288659?name=Kanaan%20winery-Pretty%20Pony-2014\">award winning<\/a> Ningxia red by Kanaan winery \u2013 something we couldn\u2019t have done just a year earlier.<\/p>\n<figure class=\"align-right \">\n            <img alt=\"\" src=\"https:\/\/images.theconversation.com\/files\/214826\/original\/file-20180413-46652-lgu5zt.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip\"><figcaption>\n              <span class=\"caption\">One of the authors orders a glass of Kanaan\u2019s Pretty Pony red during a layover at Guangzhou airport.<\/span><br \/>\n              <span class=\"attribution\"><span class=\"source\">Cynthia Howson and Pierre Ly<\/span>, <span class=\"license\">Author provided<\/span><\/span><br \/>\n            <\/figcaption><\/figure>\n<h2>Next stop: exports<\/h2>\n<p>So how easy is it to pick up a bottle of Pretty Pony at your local supermarket if you don\u2019t live in China? <\/p>\n<p>Although exports of Chinese wine are still quite low, at just <a href=\"http:\/\/data.un.org\/Data.aspx?q=wine&amp;d=ComTrade&amp;f=_l1Code%3A23%3BcmdCode%3A220410\">US$1.2 million<\/a> in 2016 compared with $15 million for Argentina and $3.2 billion for France, a growing number of supermarkets and wine shops in Europe and the U.S. are stocking some of the best Chinese wines, from <a href=\"http:\/\/www.totalwine.com\/wine\/red-wine\/cabernet-sauvignon\/ao-yun-cabernet-china\/p\/162576750?s=1401&amp;igrules=true\">Seattle<\/a> and <a href=\"https:\/\/www.danmurphys.com.au\/dm\/search\/dm_search_results_gallery.jsp?search=Kanaan&amp;link=PDP-RangeLink\">Melbourne<\/a> to <a href=\"https:\/\/www.tesco.com\/groceries\/en-GB\/products\/295163107\">London<\/a> and <a href=\"https:\/\/soysuper.com\/marca\/changyu#products\">Madrid<\/a>.  <\/p>\n<p><img loading=\"lazy\" src=\"https:\/\/counter.theconversation.com\/content\/94604\/count.gif?distributor=republish-lightbox-basic\" alt=\"The Conversation\" width=\"1\" height=\"1\" \/>While it\u2019s unlikely Chinese winemakers will be threatening their French peers anytime soon, they are now decidedly on the world\u2019s wine map.<\/p>\n<p><span><a href=\"https:\/\/theconversation.com\/profiles\/cynthia-howson-145760\">Cynthia Howson<\/a>, Lecturer, <em><a href=\"http:\/\/theconversation.com\/institutions\/university-of-washington-699\">University of Washington<\/a><\/em> and <a href=\"https:\/\/theconversation.com\/profiles\/pierre-ly-145761\">Pierre Ly<\/a>, Associate Professor, <em><a href=\"http:\/\/theconversation.com\/institutions\/university-of-puget-sound-3040\">University of Puget Sound<\/a><\/em><\/span><\/p>\n<p>This article was originally published on <a href=\"http:\/\/theconversation.com\">The Conversation<\/a>. Read the <a href=\"https:\/\/theconversation.com\/how-chinas-winemakers-succeeded-without-stealing-94604\">original article<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cynthia Howson, University of Washington and Pierre Ly, University of Puget Sound Joint ventures between Western and Chinese companies are in the news over accusations \u2013 including those of President Donald Trump \u2013 that China uses them to steal intellectual property from foreign competitors in industries like cars and technology. Less well known, however, are [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":11937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,277],"tags":[1011,1003,1558,4386,1730],"_links":{"self":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11936"}],"collection":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/comments?post=11936"}],"version-history":[{"count":1,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11936\/revisions"}],"predecessor-version":[{"id":11938,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/posts\/11936\/revisions\/11938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media\/11937"}],"wp:attachment":[{"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/media?parent=11936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/categories?post=11936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lifeandnews.com\/articles\/wp-json\/wp\/v2\/tags?post=11936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}