One of the biggest names in Bordeaux wine, Barons de Rothschild, is to produce a premium grand cru wine in China for the first time.

The group, which owns iconic Bordeaux wine house Chateau Lafite, said at the weekend that it plans to produce the wine near Penglai in the Shandong Province.

The area has become known as the Chinese Bordeaux due to its potential for turning out top quality wines.

The move by Rothschild is a coup for China as it builds its reputation in the wine world, not just as a consumer but also as a first class producer.

China will lead world wine production by 2058, according to London-based fine wine merchant Berry Bros & Rudd in its Future of Wine report, published last year.

The country already has more than 400 wineries. "It is entirely conceivable that, in such a vast country, there will be pockets of land with a terroir and micro-climate well suited to the production of top quality wines," said Jasper Morris MW in the Berry Bros report.