A friend recently gave me a bottle of red wine from the first harvest of his new vineyard in Shandong province – output so new that the bottle does not even have a label.  I admit I have not drunk it yet, so sorry ratings not available on its quality.

When I saw some news reports this week that China had become the world’s second largest wine producer I was concerned my friend might be caught in the classic China overinvestment trap. That’s when an idea catches hold and entrepreneurs run to invest until many times potential demand is quickly supplied. Probably true here.

But I was also a little surprised with the headline and so I looked at the source material from the OIV (International Wine Organization).  I found a rather different and more interesting story. (Some of the misunderstanding may have arisen because their slides are in French).