Leading Chinese vineyards are constructing chateaus at a furious pace as they strive to catch up with world-famous premium wineries whose products are pouring into the nation, sparking concerns of a boom that may go bust.

There are already more than 160 chateaus in China, and about 200 more are under construction.

Customers pick wines at a chateau in the Ningxia Hui autonomous region. Changyu has a wide assortment of vineyards in six regions across China, including Ningxia.[provided to China Daily]

The latest was opened by leading winery Yantai Changyu Pioneer Wine Co Ltd in the Xinjiang Uygur autonomous region on Aug 12.

The 630 million yuan ($103 million) Chateau Changyu Baron Balboa in Shihezi includes a 6,000-square-meter cellar, production facilities, a museum and a 37-hectare vineyard. It is expected to produce 1,000 tons of wines every year.

"Wine chateaus are the basic prerequisite for premium wines, so Changyu is building six chateaus in different grape-growing areas across China," said Zhou Hongjiang, general manager of the company.

Zhou said the Xinjiang chateau will be the company's wine production base in the western part of China.

"Chateaus are playing an important role in upgrading the structure of China's wine industry," said Wang Yancai, head of the China Alcoholic Drinks Industry Association.

"Chateau Changyu Baron Balboa has the ability to compete with European first-class chateaus. It won't be long until the chateau and the Xinjiang area gain the wine world's attention," Wang said.

The Xinjiang chateau is meant to be a tourist destination that will offer services associated with wine, such as experiencing wine culture and providing a venue for high-end conferences.

The company also plans to build a European-style town and a wine trade center at the Xinjiang chateau, with completion scheduled for 2016.

After four years of planting and cultivating grape vines, Changyu has 4,666 hectares of vineyards in Xinjiang.

The abundant sunshine and huge day-night temperature differentials result in grapes with more sugar content, making the area one of the best places in China for quality grapes.