Hunter Valley winemakers popped a collective cork on Thursday night after China said it would remove import tariffs.
Imposed by Beijing at the height of diplomatic tensions in 2020, the tariffs effectively shut Australia's largest wine export market overnight.
Tyrrell's Wines owner Bruce Tyrrell said the entire industry raised a glass of champagne last night in celebration of the news.
"It's a bit like Christmas came late . . . grape growers all over the country woke up with headaches today," Mr Tyrrell chuckled.
"There's been nothing to celebrate for three or four years. Finally the light at the end of the tunnel is no longer a freight train."
Despite the good news, it will take time for Australia to re-establish itself in the Chinese market, which may never reach its pre-tariff value of $1.3 billion.
Chinese wine consumption has dropped by about 75 per cent due to ongoing COVID disruptions and changes in consumer behaviour.
Even if the market surged to pre-2019 levels, Australia may not have enough grapes to supply the demand.
"[The tariffs] caused a lot of dislocation in the industry, people suffered terrible losses and vineyards were pulled out," Mr Tyrrell said.
"There were vineyards that existed five years ago that are not here today. That's the price we had to pay."
Last year, only $10 million of Aussie wine was exported to China.
Wine Australia chief executive Martin Cole there would be support for vineyards looking to re-engage the once lucrative market.
"The wine market in mainland China is different now to what it was at the end of 2020," Dr Cole said.
Just hours before the official announcement on Thursday evening, Prime Minister Anthony Albanese was at Brokenwood Wines in the Hunter Valley and predicted the end of the lengthy stand-off was "imminent".
"The re-entry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers," Mr Albanese said.
Hunter Valley Wine and Tourism Association chief executive Jennie Curran said local vineyards were far less reliant on exports than other regions.
However, the tariffs lifting will have a knock on effect for cellar door tourism.
"We are the closest wine-producing region to Sydney," she said.
"Hopefully this sees inbound Chinese visitations bounce back, that's an important growth opportunity for us."
Margan wines owner Andrew Margan said although the industry knew the tariffs lifting was "a matter of when not if", vineyards should be cautious about running back to China.
"China isn't the answer, people need to understand that," Mr Margan said.
"The reason we're in this mess is because the industry put all our eggs into one basket, and then that basket tipped over.
"Now we've got an oversupply that is going to exist regardless of the China market being open."
The decision removes one of the last major sanctions on $20 billion worth of Australian exports, with restrictions remaining on lobster and beef.
