While global attention has long focused on Scotland, Japan, and the United States as whisky powerhouses, a new contender is steadily emerging in the East. China, once seen primarily as a booming market for imported whisky, is now building a foundation to become a significant producer in its own right. Despite a recent cooling in consumer enthusiasm compared to the peak pandemic years, investment in local whisky production continues to grow, signalling a strategic long-term shift.

Industry data indicates that over fifty whisky distilleries are now operating across China. This substantial number underscores a clear commitment to developing a domestic whisky industry, even amid a more cautious economic climate. This ambition was further highlighted during a recent visit by a Northern Ireland government delegation, led by Economy Minister Dr. Caoimhe Archibald, to the China Alcoholic Drinks Association (CADA). The discussions centered on strengthening trade ties and cultural exchange within the spirits sector, pointing to China's openness to international collaboration even as it builds its own capabilities.

The scale of China's alcohol market provides a formidable backdrop for this development. CADA President Song Shuyu noted that the country is home to over 450 million alcohol consumers, with annual sales surpassing €200 billion. Several large domestic beverage companies report revenues exceeding €3 billion each. Within this vast market, whisky has seen remarkable growth, creating fertile ground for both imported and now, locally produced spirits.

International spirits giants are already part of this production landscape. Diageo has commenced operations at its malt whisky distillery in Eryuan, Yunnan, while Pernod Ricard's distillery, The Chuan, on Mount Emei in Sichuan, has been producing since 2021. On the domestic front, major Chinese players are making significant moves. For instance, the Shanghai Bairun Investment Holding Group—owner of the popular ready-to-drink brand Rio—has invested in the sizable Laizhou Distillery in Sichuan.

A defining characteristic of this new wave of Chinese whisky is the pursuit of a distinct “Eastern” identity. Distilleries are consciously experimenting with local ingredients and aging techniques to differentiate their products. Laizhou, for example, uses Mongolian oak and aging in traditional huangjiu (yellow wine) barrels to impart unique sandalwood notes. The Chuan employs Chinese barley and ages its spirit in a proprietary oak from the Changbai Mountains, aiming for a profile featuring spicy, earthy, and herbal tones reminiscent of sandalwood, dried tangerine peel, and ebony. The quality of these efforts is beginning to gain international recognition, with The Chuan winning medals at competitions such as the International Spirits Challenge and the San Francisco World Spirits Competition.

However, the path to becoming a major global producer is fraught with challenges. Whisky production requires immense patience and capital, with maturing periods often exceeding a decade. This long horizon poses financial risks, as evidenced by listed wine producer Grace Vineyard's decision to privatize its whisky business unit to shield its core operations from volatility. Furthermore, the consumer landscape is shifting. After years of rapid growth, 2024 saw a contraction in both the volume and value of whisky imports to China, suggesting a more value-conscious market. The rising volume but stagnating value of imports in 2025 further indicates a tilt toward more affordable offerings.

For China's nascent whisky industry, the challenge is twofold: it must navigate these macroeconomic pressures while simultaneously convincing discerning drinkers to choose its young, domestically produced spirits over established and prestigious international brands. The journey from enthusiastic market to respected producer is a long and resource-intensive one. Yet, with sustained investment, a focus on developing a genuine local character, and a vast domestic market as a testing ground, China has undeniably started down that road.