In 2018, baijiu giant Jiangsu Yanghe Distillery Co., Ltd. acquired 12.5% of one of the largest global wine conglomerates in Chile, VSPT Wine Group, for US$65 million. The transaction was the first of its kind in the South American country, in which a Chinese baijiu producer purchased a stake in a Chilean wine company. The transaction involved considerable strategic and business planning and the support of experienced legal and financial advisors. This case study first analyzes how a change in alcohol consumption habits in China was a critical factor for Yanghe in deciding to carry out the transaction and the rationale behind choosing a target from the “new wine world.” It then explores how the Chile-China Free Trade Agreement has increased the amount of wine exported to China and how Chilean wine is perceived as “value for money” among Chinese consumers. Finally, it discusses how this transaction is an example of how Chinese state-owned enterprises have learned rapidly from their outward foreign direct investments and how Chinese investors are increasingly using experienced advisors to help inform their overseas investments.