French company Moet Hennessy, an investor in Yinchuan, says by 2014 it will have a locally produced premium sparkling wine on Chinese shelves.
Daylong Winery, a Thai company, has invested 600 million yuan in the Yinchuan region since the opening of it's first winery in 2008.
Chen Deqi, president of Daysun Group, says the company plans to invest 1 billion yuan in their winery over the next six years.
"The money will be spent on adding more breeding parks for improving seed, logistics facilities, machinery, a shelter forest belt, new chateaus and a new vineyard covering 6,600 hectares," says Deqi.
According to the BBC China is currently the world's eighth largest producer of wine with Chinese consumers drinking more than 1.6 billion bottles of wine a year.