Chinese investment may provide opportunity for U.S. winemakers

Last month, a group of Chinese investors bought Napa Valley winery Silenus Vintners and an adjoining parcel of land for $6 million. It's the first major transaction of its kind in the region and likely the beginning of a trend, real estate agents and investment bankers say.

Chinese investors have long been keen to put money into natural resources and real estate projects. "Now, they invest their money in expensive wines," says Hua Ming, a Chinese-American with a minority stake in Silenus. His partner, a Chinese investor from Henan Province in China, owns a majority stake.

Skeptics worry that Chinese investment in Napa Valley could change the character of the region -- and the quality of its wines. But supporters say it'll enhance ties between the two countries and unlock new opportunities for U.S. winemakers.

"Entering a new market is very difficult for Western wineries to do," says Scott Meadows, general manager of Silenus Vintners. "But having a Chinese partner that has the ability and knowledge hopefully gives you a leg up."