Optimism as China-EU Geographical Indications Agreement Comes into Effect

Optimism as China-EU Geographical Indications Agreement Comes into Effect

(Mar 4th, 2011, Shanghai) March 1st saw the launch of the EU-China bilateral agreement officially on European Geographical Indications (GIs). Eight years in the making, the agreement protects 100 European GIs in China and the same number of Chinese GIs in the European Union against imitation and expropriation. The Chinese wine and spirits space regards this move as a milestone event for Chinese wine in the European market.

A GI identifies a product whose quality, reputation, or other such characteristics relate to its geographical origin. GI designation protects products from counterfeit around the world.

The agreement is the first comprehensive and high-level agreement on GIs signed by China and will further strengthen China-EU economic and trade cooperation, benefiting consumers and businesses in both regions.

The wine and spirits sector features in 11 of China’s 100 GIs. They are Shaoxing Jiu, Helan mountain wine, Huanren ice wine, Yantai wine, Huishui black glutinous rice wine, Jiannanchun spirits, Gaolu spirits, Bandaojin spirits, Shacheng Wine, Moutai spirits and Wuliangye spirits. 

The agreement gives a confidence boost to the Chinese GI wineries and will strengthen brand awareness in western markets.  Zhang Zhiyan, the Ningxia Xige winery owner, stated: “The formal implementation of the agreement is a matter worthy of the wine industry’s attention. A GI means a passport to the world for Chinese farm products. It increases the added value of GI products brands and gives consumers from all over the world access to better and unique products. ” 

To date, Helan Mountain wine has been exported to more than 20 countries globally, including mainstream wine-consuming markets such as Germany, France, the United Kingdom, the United States, and Australia. In 2019, Xige winery’s iconic brand, “Helan Red”, exported approximately 50,000 bottles to the European market with a price tag of about 25 euros per bottle.  

In recent years, the need for a “made in China” presence in the European market has been growing.  In 2020, China-EU trade volume reached 649.5 billion U.S. dollars, and China has become the EU’s largest trading partner for the first time. Li Yongjie, Deputy Director of the Department of Treaty and Law of the Ministry of Commerce said that he hopes Chinese companies and local government can make full use of the opportunities brought by the China-EU GI to expand exports.

In total, 53 EU wine GIs are listed in the agreement, an accord the European wine industry has also welcomed. For years, many European wineries’ brands were threatened by counterfeits in the market. The deal protects the intellectual rights protections of the brands.  

EU Agriculture and rural development Commissioner Janusz Wojciechowski said: “European Geographical Indications products are renowned for their quality and diversity. It is important to protect them at an EU and global level to ensure their authenticity and preserve their reputation. This agreement will contribute to do this, while also strengthening our trading relationship, benefitting our agri-food sector and consumers on both sides.”

Get the full agreement here.

Geographical Indications

France

Germany

Greece

Hungary

Italy

Portugal

Romania  

Slovakia 

Slovenia

Spain

China

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