Mainland China’s tariffs may see cheaper Australian wines destined for Hong Kong after Lunar New Year, merchants say

Australian reds and whites have found themselves among products hit by sizeable import tariffs in one of their most lucrative markets

Some discounts may be seen after the holiday period as distributors unwilling to pay hefty tariffs decide to divert their inventory to Hong Kong instead

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Australian wine in a shop in Beijing on December 23, 2020. Photo: AFP

Published: 10:30am, 10 Jan 2021Updated: 9:15pm, 10 Jan 2021

Hong Kong wine lovers could soon reap an unexpected benefit from the souring of relations between mainland China and Australia: their favourite plonk from down under may become a bit cheaper.

Australian reds and whites have found themselves on an expanding list of products hit by sizeable import tariffs in one of their most lucrative markets, as Beijing has upped the ante in a worsening trade spat involving commodities from barley to timber and lobsters.

With distributors unable to import into the mainland without paying hefty tariffs, they may decide to divert their inventory to Hong Kong instead, flooding the city with cheap Australian wine, some analysts believe.

However, wine buffs and investors may have to wait until after the Lunar New Year to see prices drop, because most of the wines needed for the festive season have already arrived in mainland China, merchants said.

Any impact might emerge in a month or two, said Eric Man Tak-wing, general manager of Wai Shing Wine International, a retailer and wholesaler.

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