From the balcony of her Yarra Valley estate, winemaker Helen Xu is looking across 70,000 grape vines.
After investing "tens of millions of dollars" into this venture, Xu is glad this Lunar New Year has finally delivered a change of fortune.
Wine Australia's Export Report, released on Wednesday, shows that in the lead-up to Lunar New Year celebrations, Australian wine exports to China are tracking upwards.
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
Like many winemakers, she struggled for several years after China introduced heavy tariffs on Australian wine imports in 2020 and 2021 before .
Turning a profit from an 80-hectare site has also meant managing rising production costs while also battling an insect pest.
Now, new export data suggests Australian wine sales to China are returning to previous levels far sooner than expected.
"The December figures were close to $150 million for the month and November was just under $100 million. So definitely an uplift in December," Wine Australia's market insights manager Peter Bailey said.
"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
The December uptick is a huge relief for Australia's 2,000 wine producers. Many were hit hard by the tariffs, which cut annual wine sales to China from $1.2 billion to just a trickle.
"Our China exports 100 per cent stopped for those years," said Xu.
"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
"The value of Australian wine exports to China increased from $10 million in 2023 to $902 million in 2024," said Bailey.
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.
The increase is a direct result of higher levels of wine shipments to China, the report says.
"In volume terms, sales went from one million litres to 83 million litres since the tariffs were removed in March 2024," Bailey said.
"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
In the Yarra Valley, Xu's green fields are crossed by neat rows of leafy vines bearing plump red and white grapes almost ready for harvest.
"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
"Lunar New Year is always about family gatherings and happy times and obviously lobster is one of the top delicacies in the world, so everybody wants to have the best food in their banquet," said Victoria Seafood director Oscar Zheng.
"The Chinese economy may have slowed, and consumption may be slightly lower than before, but people will still buy lobsters regardless of the price," he said.
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
"There are some really fantastic wines being made in China and Chinese consumers are starting to discover those wines, and indeed there's been promotional efforts to drink local just as we do here in Australia," McLean said.
"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.
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China's economy is predicted to grow by 4.5 per cent in 2025, according to the World Bank.
"Wine is a luxury product and there is still strong demand. China is a really important export market for Australia, and probably our largest market in the future," McLean said.
"But, for now, it's a little bit of wait and see as to what wine sales look like in the long term."
For wine producers like Helen Xu and her husband Joey Zeng, the wait for tariffs to lift has been hard and costly, and China's import bans are not the only challenge they have faced.
In recent years their vineyard, Helen and Joey Estate in Victoria's picturesque Yarra Valley, was also affected by grape phylloxera — an insect pest that afflicts grapevines worldwide.
"It is a huge disaster for this region and so many vines lost," she said.
Replanting 50,000 vines has cost Xu around $5 million so far, and the returns are slow. Meanwhile, Australia's economic crisis has added to running costs and impacted tourism revenue from the hotel and restaurant attached to the vineyard.
"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
Chinese tourists are still visiting, keen to see Australian wine production and sample the fruit of the vines. Among them, retail worker Ace, whose father is holidaying from mainland China.
"Comparing this to the wine we produce back in our hometown [in China], it is absolutely amazing," he said.
"It is my dad's first time in Australia. So, I am also taking him for a tour to have a look at the beautiful country."
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
"We worked from 5am when it was still dark. The men planted young rice. I was doing that as well. But at the end of the day, you just felt broken," she said.
"For my parents, their only dream was that one day, I would not need to work so hard in the fields."
Xu finally left the farm to study chemistry at a university in China, which also meant challenging gender norms.
"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
"One time maybe every year, we had meat. That usually happened at Chinese New Year, the Lunar [New] Year. It was the only day you could have some meat,” she said.
"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
"The whole Chinese population, they still have so much passion for Australian wine. I strongly believe the market has a lot of potential," she said.
It's a view shared by Wine Australia's Peter Bailey.
"Even before China tariffs were introduced, imports from other countries were declining, but Australia was still growing," he said.
"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
"The message I would send out is: before jumping into this industry, do some research," she said.
"And second, if you do jump in, please have as much patience as possible."
This story was produced in collaboration with SBS Chinese.
