Alcoholic beverage consumption in China: a censored demand system approach

China's admission in the WTO and commitment to cut tariffs on alcohol related goods provide a considerable opportunity for the USA, Europe and other countries. The present study examines Chinese consumer behaviour with regard to alcoholic beverages ( wine, wine cooler and beer) using a Chinese household survey data. The results show that beer and wine cooler are normal goods while wine is still a luxury good in China. The price elasticities of wine and wine cooler are larger than that of beer.