Wine has been produced in China as far back as 2,200 years ago, and the development of the wine industry has been encouraged by the Chinese government for 25 years. Some 95% of China's wine consumption is currently met by domestically produced wines, but foreign companies have started to take an interest in this growing market.

The consumption of wine in Asia is forecast to double between 2006 and 2011, with China accounting for much of that growth, according to experts. The East Asian country's demand for wine has grown in parallel with rising living standards over the last 25 years, leading to China entering the global top ten of wine consumers in 2005.

Although the quality of Chinese wine has been improving, a growing number of China's newly wealthy are keen to try foreign drinks, which have a status symbol attached to them, and some have even shown an interest in oenology, the study of wine and winemaking.

Some French firms have already entered joint ventures with Chinese companies in order to take advantage of this trend. Pernod Ricard is backing Dragon Seal, R¨|my Martin is providing its expertise to Dynasty, which is doubling the size of its operation in Tianjin, and Castel has struck a partnership deal with Changyu.

A French winemaker association has also recently launched a marketing drive in partnership with French retailer Carrefour and chefs in high-end restaurants in major Chinese cities.

France is currently China's leading wine supplier, ahead of the US. Sales of French wines increased 52% in Hong Kong, 58% in South Korea, 25% in Singapore and 113% in China in 2007.