New figures from Wine Australia show total wine exports to China had jumped by 51% in the 12 months to March 31, crossing the $1 billion threshold for the first time.
Data shows a 16% surge in overall value to $2.65 billion between March 2017 to March 2018.
The volume of exports also grew 10%, hitting 844 million litres.
Wine Australia chief executive Andreas Clark said: "The China story is really impressive and it has still got a long way to go.
"The success has seemingly come quite quickly, but that said, those who are really enjoying the success there have actually been there for 10 to 15 years."
Treasury Wine Estates was the major driver of exports to China, with Penfolds the biggest selling Australian wine brand in the country, followed by its Rawsons Retreat label at No.2.
Assistant Minister for Agriculture and Water Resources Anne Ruston said with tariffs into China likely to be scrapped by next year, further growth could be expected.
"The Government anticipates the value and volume of wine exports to China will only grow as tariffs for Australian wine into China will be entirely removed from January 1 next year," Ruston said.
However, Clark cautioned that it would be difficult to sustain growth forever.
"At some point in time, it will drop off by definition," he said.
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