Last year COFCO, China's state-controlled food conglomerate, bought 5% of Smithfield, the world's largest pork producer.

ECONOMIST: No matter how bad things get, people still need to eat

First, COFCO is in the wine business and has national distribution in China with its Great Wall brand.

FORBES: China Enters the Vineyard

Second, Chinese like to own hard, tangible assets such as agricultural land, and COFCO probably got a good deal.

FORBES: China Enters the Vineyard

Apparently, the French firm has also spoken to Tingyi, another major food manufacturer, and COFCO, the large Chinese agribusiness conglomerate.

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In November China Agri-Industries, a subsidiary of COFCO, established a partnership with Wilmar, the world's largest trader in palm oil.

ECONOMIST: No matter how bad things get, people still need to eat

Owning a French vineyard will give COFCO access to that know-how in a way that would not otherwise be possible.

FORBES: China Enters the Vineyard