The emergence of China as an economic superpower

If you consider yourself a wine enthusiast or a beer lover, look no further for Asia's great wine hub. Starting yesterday, the Hong Kong government abolished excise duties on all alcohol except hard liquor, paving way for an expanding industry based on the love of quality and fine wines. The removal of alcohol duties will undoubtedly cost the government (HK$560 million per year to be exact), but the ultimate beneficiaries will be the consumers and wine industry in Hong Kong, which turns out not to be a bad decision for its laissez faire economy.

Financial Secretary John Tsang said that consumers will benefit in two ways:

1. Lower prices for the storage and auction on reserve wines for collectors

2. Lower prices for the consumption of wines and beers for the average consumer (Hong Kong's largest supermarket, ParknShop, and its subsidiaries, will lower its wine prices by 28% starting today)

Furthermore, Hong Kong is determined to develop itself into a major fine wine hub in Asia (to differentiate itself from Singapore). The city hopes to tap into Asia's (ex-Japan) HK$55 million wine industry to boost wine trade and tourism. Tsang also hopes to boost the local economy through increased employment in this industry, but its effectiveness has yet to be seen (I can't think of any local wine retailer other than ParknShop & Co..