Full Question
Is it right that most wine imports to China go through Hong Kong because of China's high taxes on alcoholic beverages? So is it best to find an importer in Hong Kong to distribute wine in China?

Answer
1. Yes, the taxes on wine are much less in Hong Kong than PRC (People's Republic of China). But, unless they are smuggled, once the wines are imported into China, taxes will still be paid. So that isn't the main reason why Hong Kong is a hub for wine. As I understand it, the lower Hong Kong taxes make Hong Kong an excellent place for central distribution to the rest of Asia. For example, a shipment arrives from Europe and is stored in Hong Kong (no high import duties), then broken into smaller orders that are shipped across Asia (where taxes are eventually paid).

2. At the moment, Hong Kong has a more sophisticated public in terms of wine knowledge and consumption, but Hong Kong is dwarfed by the PRC in terms of consumption. The wine market in PRC is so hot these days that every vineyard is trying to get in on the action. Unfortunately, unless you have a very well known famous brand, willing to invest heavy in marketing, or have some sales gimmick that nobody else has, you will find it very hard to interest a Chinese distributor.

Selling wine in China these days is almost like trying to get into the chopstick business - its high volume; tight margin and only a few people are making any money. So to answer your question, if you can find a distributor interested in representing your product, who can show a track record of taking products to market, then jump on the opportunity regardless whether they are in the PRC or Hong Kong.