Apart from culture exchanges, Hao said another factor drawing many foreign companies to Ningxia is the huge market potential.

"Wine-making has been growing steadily in Ningxia every year. The flurry of equipment manufacturers that are here is an indication of the rich potential," said Julien Desmaison, export manager of Gregoire SAS, a French company that makes grape harvesters.

He said that most of the grapes are picked manually in China, while 80 percent of the grapes are harvested by machines in France. "Ningxia has huge business growth potential and the biggest market for us in China, due to its flat terrain, open spaces, large area, and organized vineyards."

Benjamin Macrez, sales and marketing manager of oak barrel producer Saint Martin, said his company sold over 200 barrels in Ningxia last year. "There's high-quality wine, (then it needs) high-quality barrels."

Ningxia has also won several international accolades at wine exhibitions and was recently made an observer to the International Organization of Vine and Wine, according to Cao Kailong, the head of the region's bureau for the grape and flower industries.

Zhang Jinshan, chairman of Ningxia's wine association, said the local government's commitment to improve wine quality by sticking to the vineyard winemaking model, will help sustain growth and win more honors and market share. Though the Ningxia wine industry will encounter testing times, it can circumvent this by investing more in advanced technologies, he said.

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