The report shows strong exports for the three months to the end of December 2024, offering fresh hope for thousands of Australian winemakers like Xu.
Red wine grapes ripening on the vines of Helen Xu’s vineyard. Source: SBS / Sandra Fulloon
“It is not a great time for the wine industry and a lot of people will have to make a decision about whether to go forward or stop,” she told SBS.
Turning a profit from an 80-hectare site has also meant managing rising production costs while also battling an insect pest.
“The increase could be related to the festival season in China, and exporters were trying to get their wines in prior to that.”
Winemaker Helen Xu says she and her husband have “put everything” into their estate. Source: SBS / Scott Cardwell
Despite an initial spike after bans were lifted in March 2024, wine exports to China slipped below $50 million a month in July and August.
“However, because we have a small business in China, luckily we had a little bit of stock there. So, that’s how we coped,” she said.
Winemaker and chemist Helen Xu testing a barrel of red wine. Source: SBS / Sandra Fulloon
According to the Wine Australia report, in the nine months after tariffs were removed — between April and December last year — 83 million litres of wine went to mainland China.
That’s almost half of Australia’s global wine exports for the 12 months to the end of December 2024, which increased by 34 per cent to $2.5 billion.
“So, it is pretty strong growth over that period of time,” he said.
An aerial view of Helen Xu’s estate in the Yarra Valley. Source: SBS / Scott Cardwell
Improved weather conditions are another boost for growers.
“It is a good season and we hope to crush 150 tonnes this year,” Xu said.
Oscar Zheng, Director of Seafood Victoria. Source: SBS / SBS Chinese
Rock lobster sales to China , with more than 500,000 kilograms exported since China’s import tariffs were lifted.
However, the Chinese demand for premium Australian products including wine has shifted in recent years, according to Australian Grape and Wine chief executive Lee McLean.
Lee McLean is CEO of Australian Grape and Wine. Credit: Supplied Australian Grape and Wine
And that may yet have a long-term impact on exports.
“The changes to the Chinese economy as well have had an impact. So, people are probably watching their hip pocket a little bit more than they were a few years ago,” he said.
“But, for now, it’s a little bit of wait and see as to what wine sales look like in the long term.”
“It is a huge disaster for this region and so many vines lost,” she said.
“We have spent tens of millions so far. Joey and I have put everything, every dollar here. So, we hope the business will increase because the hotel only opened one year ago.
The winery, restaurant and accommodation complex at Helen and Joey Estate. Source: SBS / Sandra Fulloon
“We are still working very hard trying to get over the hump. The restaurant contributes a little bit even though we are not profitable because, these days, hospitality is not fantastic.”
Helen Xu is also passionate about the Australian landscape. It is one reason she migrated from China in 2009.
Helen Xu (lower right) aged five, with her family in China. Source: Supplied / Helen Xu
Xu was born just before China’s 1966 Cultural Revolution. Her family grew rice in Zhejiang province, in the country’s east. To meet government quotas, as a young girl she spent long hours labouring in the fields.
“For my parents, their only dream was that one day, I would not need to work so hard in the fields.”
“Usually, one class had 30 students and on average about three to five girls there. Not balanced, really not balanced,” she said.
Winemaker Helen Xu with visitors to Helen and Joey Estate from China. Source: SBS / Scott Cardwell
Despite the gender imbalance, Xu excelled and went on to work for a large multinational company. But she has never forgotten the hardships of life for many Chinese workers.
“When I was a little girl I never dreamed one day I could be sitting here in Australia. No way, no way. Because that was in the 1960s and 70s, and it was a very harsh time [in China].”
Winemaker Helen Xu remains hands-on at the winery business. Source: SBS / Sandra Fulloon
While combining chemistry and farming skills helps Xu to produce premium wine, she can only hope exports continue to climb.
It’s a view shared by Wine Australia’s Peter Bailey.
“So what it shows is that Australian wine is very well regarded within the China market and hence, since the tariffs have been removed, there’s been a lot of pent-up demand to get Australian wines back into that market.”
Helen Xu hopes for good times ahead for Australia’s wine industry. Source: SBS / Sandra Fulloon
For Xu, good times may be around the corner. But she has this advice for anyone wanting to start their own vineyard.
This story was produced in collaboration with SBS Chinese.