# Distilling Industry

Liquor to Liquidate: China’s Baijiu Bubble Bursts as Raw Spirit Hits ‘Cola Prices’

The Chinese Baijiu industry is facing a severe crisis as base liquor prices collapse to levels seen in consumer soft drinks. A massive supply-demand imbalance, fueled by years of overexpansion, has led to a wave of judicial auctions and a 'volume-price-profit' decline across the sector.