Homegrown Luxe

Now those prices are attracting foreign money. In January, Diageo, the maker of Johnnie Walker and Smirnoff, acquired 43 percent of Sichuan Chengdu Quanxing, parent company of Sichuan Swellfun, China's oldest baijiu distiller. In May, the French conglomerate LVMH bought 55 percent of Wen Jun from Jiannanchun, the No. 3 producer. These Western buyers are no doubt counting on the fact that the rest of the world may someday mimic China, and raise a glass of baijiu with guests.

With Quindlen Krovatin in Beijing

© 2007