The market share for French wines in China has been declining, and is predicted to continue to decline. Upon the elimination of Chinese tariffs on Australian wines that can range between 14% and 30%, Australia may overtake France and the biggest wine exporter to China within four to five years. In the first nine months of 2014, customs data shows that Australian wine exports to China were valued at US$182 million – second only to France, which saw exports to China valued at US$502 million. Currently France has a 40% market share in the Chinese wine market, followed by Australia with 17%, and Chile with 9%. Once Australia’s less expensive wine receive preferential tariff treatment, it is forecasted that Australian wine will rise to 20% market share. Credit Suisse also predicts that give the closer economic ties between the two countries, China will see US$38 billion in capital outflows in Australian land within the next seven years, including into Australian vineyards and wineries.
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