South African wine could soon benefit from a major boost in global market access as China signals a sweeping new trade initiative.
At the Forum on China-Africa Cooperation (FOCAC) held in Changsha on June 11, Beijing proposed a zero-tariff policy for all taxable goods from African nations with formal diplomatic ties to China. With only Eswatini currently outside this circle, the measure effectively opens the door for 53 African countries—including South Africa—to access the world’s second-largest economy under dramatically improved trade conditions.
If enacted, the policy would eliminate import tariffs on South African wines entering China, placing the country among a select group of global wine producers—such as New Zealand, Chile, Australia, Georgia, and Serbia—that already benefit from duty-free access to this competitive market.
According to Chinese customs data, South Africa exported USD 1.86 million worth of wine to China between January and April 2025. This placed it 12th in terms of value and 10th in volume among all wine-exporting nations. Though modest, these figures show promise. South African wines, known for their balance of quality and affordability, have gained traction in retail. KWV’s Chenin Blanc, for example, retails at RMB 48 (approximately USD 6.60) in Sam’s Club China and is one of the top-selling white wines at the warehouse chain. KWV’s other wines have also established a presence on instant delivery platforms like Pupu Mall.
Removing tariffs could enhance the price competitiveness of South African wines, encouraging distributors and retailers to expand their listings and marketing efforts. However, challenges remain: even with duty-free status, South African wines will still be subject to China’s 10% consumption tax and 13% value-added tax—costs also borne by other duty-exempt wine-exporting countries.
Beyond wine, the policy reflects China’s broader ambition to deepen economic integration with Africa. China has been Africa’s largest trading partner for 16 consecutive years. In just the first five months of 2025, bilateral trade reached RMB 963 billion (around USD 133 billion), up 12.4% year-on-year—the highest ever recorded for that period.
Despite the excitement, the zero-tariff measure remains a proposal. No formal implementation date has been announced, leaving wine exporters, trade officials, and importers eagerly awaiting confirmation.
For South African wine producers, the policy—if ratified—could mark a turning point, giving them a more competitive edge in China’s increasingly saturated and price-sensitive wine market.
Source: Vino-Joy