Leading Australian wine brand Penfolds will begin sourcing and producing wine in China in order to sidestep crippling tariffs imposed by Beijing.
The move came in retaliation to calls from Foreign Minister Marise Payne for an independent investigation into the origins of COVID-19.
Efforts have been underway by Australian businesses to diversify trade away from China to mitigate losses from the trade war—with a significant uptick of wine exports across Asia, including Singapore (up 108 percent over 2021 to AU$166 million), Hong Kong (up 45 percent to $191 million), South Korea (up 74 percent to $47 million), Taiwan (up 65 percent to $31 million), and Thailand (up 31 percent to $28 million).
Penfolds, however, has decided its best approach to maintaining market share in China is to produce wine locally.
"China is an emerging fine winemaking region, and we're confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality."
According to Peter Draper, executive director at the Institute for International Trade at the University of South Australia, obtaining a genuine resolution will be difficult. However, the Australian government is most likely using the platform to expose Beijing's actions and behaviour.
"As they say, 'Sunlight is the best disinfectant.' I think that's what the Australian government is aiming for in this case," he told The Epoch Times previously.