Source: English.news.cn Updated:2013-8-28
Earlier this month, "Perfect China" - a Chinese wine company based in Yangzhou - made the country’s first ever investment in South Africa’s wine industry. It bought a wine cellar as well as large vineyards located near Cape Town.
The investment was warmly greeted and is also expected to bear fruit in the trade between the two countries. Yin Yue explains on whether there will be enough wine to go round.
They say "In wine there is truth." But there are also opportunities.
The Chinese company, "Perfect China" bought the "Val de Vie" wine estate close to Cape Town, including its wine cellar and a 25-hectare wine farm for an undisclosed price.
Perfect Wines of South Africa, in which Perfect China has a 51% stake, will be relying on this acquisition to boost the current cellar facilities and increase the maturation capacity.
"This is a perfect investment we need more this helps to create more jobs." Hein Koegelenberg, CEO of LA Motte Wine Estate said.
Over the past years, South Africa has witnessed a drop in its wine exports, especially to the UK and the US. However, wine exports to China have expanded 6-fold due to rising demand for the beverage in the world’s second-biggest economy.
The trade seems to be mutually beneficial. But not everyone shares this opinion. There are worries that such kind of investments might threaten the local economic development.
"I think that does'nt make any sense & We need FDI." Don Ross, Dean of Commerce of University of Cape Town said.
Clinks of glasses mean success in business. It’s widely believed that South Africa needs more deals like this one, which will not only help to develop local economy, but also give South Africa more reasons to toast on the world stage of wine.