China is still soaring, but Xi Jinping’s revolution is just around the corner

The economic and political focus of the world is continuing to move inevitably eastwards. China is now the most powerful country in the world, the country that everyone is looking to and hoping to engage in an economic growth that would seem to have no limits. Even the Pandemic, which started right here, has not been able to slow down the Chinese engine, which will close its GDP growth in 2021 at between + 8.3% and + 8.9%. And results in the wine trade are also concrete. Following three years of sharp decline, in the first half of 2021 volumes registered -1.4%, and values -9.4%, and an evident drop in the average price. We must obviously consider the impact of the collapse in imports from Australia, Beijing’s number one wine partner until a few months ago, where instead, duties above 100% caused a 90% drop in shipments. It was within this context that Spain, France and Italy began growing more, so much so that by mid 2021 growth registered + 75.7% over the same period in 2020, increasing from 37 to 65 million euros.

However, in terms of GDP per capita, China is still behind and the Secretary of the Chinese Communist Party, and President of the Republic, XI Jinping has decided to intervene in the redistribution of wealth in a rather revolutionary way. He has decided to apply much more severe rules to the high income classes, and a few weeks ago Jinping stated, “they must now give back to society part of what they have taken”. So, now it seems that after Deng Xiao Ping’s capitalist revolution and motto “Getting rich is revolutionary”, China is now turning back to its socialists values with the priority “Prosperity for everyone”.
It is not yet impossible to predict what effects such a historic turning point might have on the wine trade, which at the moment is linked to the bourgeois production that Jinping is ready to ask to accept economic sacrifices. Certainly, that the middle class is Potentially growing, at least for some types of consumption, is good news, as long as the wine sector learns to identify it.

In the meantime, the doors of InternatIonal stock market Quotes have been closed to China’s Financial VIPs - From Ali Baba to Din. On the other hand, the financial world Would appear to be more curious about than terrorized of the real estate giant EvergaNrde’s bankruptcy that has accumulated more than 305 mIllion dollars in debts. Beijing would seem to have no intention of saving the company, which sends off a signal that China wants no part of financial excesses and liberties, at least in the form and the way it had been used to.