Baijiu, that quintessential Chinese banquet swill, is now under threat by European-style red and white wine.

According to an anonymous baijiu industry insider, the Shandong government to looking to introduce new regulations when official banquets are held that would see baijiu replaced by wine.  The source goes on to say that this new policy is already in place in Weifang, an area in Shandong.

Despite being as yet unverified, the source says the new rule is coming: “We have somebody who has seen this Shandong government document that says wine - and not baijiu - is to be used for greeting guests. I personally haven’t seen it, but it’s real.”

China’s baijiu industry has fallen on hard times over the past two years. Austerity measures designed to fight against corruption have led to declining sales, sending the industry into a readjustment. On the other hand, the wine industry is enjoying a boom in China. Last year, China became the largest consumer of wine in the world by sheer numbers, surpassing France. In 2013, Chinese wine drinkers consumed 1.86 billion bottles of wine.

Baijiu remains entrenched in Chinese culture from its association to festivals and holidays, like Chinese New Year. However, as the baijiu industry itself admits, a purchase once a year is not enough to sustain the slumping industry.