Chinese millionaires are abandoning their chateaux, delivering another blow to the French economy. In the early 2000s, Bordeaux wine became beloved in China, with Beijing becoming the largest destination for French exports, receiving 71 million bottles a year.
This led to many wealthy Asians investing in vineyards. According to Chinese real estate agent Li Lijuan, 300 wine estates changed hands between 2009 and 2019. In 2008, Daisy Haiyan Cheng spent £840,000 on Chateau Latour-Laguens, a castle with 75 acres of vineyards. She reportedly sold medium-quality bottles of Bordeaux for between £17 and £42, ten times the price of production.
But now, she, along with many other Chinese investors in French wineries, has abandoned ship. Chateau Latour-Laguens is now up for sale for a fraction of what she bought it for, £126,000. There are reportedly 50 such chateaux on the market.
Hong Kong investor Chi Keung Tong did something similar. He acquired several properties and gave them more Chinese names “Château Golden Hare,” “Imperial Château,” or “Tibetan Antelope”.
This prompted many in France to worry that their traditions and legacies were being sold off to the highest bidder, even if they didn’t respect the art of winemaking. There were numerous petitions and calls for sale.
Chi Keung Tong has now sold his lands back to local investors, reportedly losing a lot of money. The new owners have given the chateau back its original French name.
A report from the Safer, France’s agricultural land agency, concluded that the Chinese investors who improvised as winemakers and chateaux owners generally lacked knowledge and underestimated the complexity of the roles.
In the investment magazine Fonds-Online, an Asian vineyard owner spoke about demanding harvesting as early as June for commercial reasons.
Covid is also blamed for the failure of Chinese vineyards. According to the International Organisation of Vine and Wine, consumption of French wines has been declining for 10 years; in 2023 alone, it dropped by 25% compared to 2022.
But there are those Chinese investors who see winemaking as a generational work, not a quick cash grab. Zhang Rong, at Chateau des Chapelains, produces an award-winning red wine and Jack Ma, the founder of Alibaba and owner of Chateau de Sours, produces a high-end vintage.