New Zealand’s economic relationship with China has expanded significantly over the last decade, with exports increasing 200 percent over this period and China becoming New Zealand’s third largest bilateral trading partner and fourth largest export market. 

This comes on the back of China’s sustained GDP growth of around 9-10 percent and the resulting transformation into an economy with at least 100 million middle-class consumers. 

New Zealand Trade and Enterprise director China, Andrew White, says the April signing of the Free Trade Agreement with New Zealand will further benefit growth in trade and play a major contribution towards opening up new business opportunities and enhancing relationships that already exist with China. Over time, the FTA will result in the elimination of tariffs on 96 percent of New Zealand exports to China and is estimated to lift New Zealand’s export earnings from China by US$180 to $280 million annually. 

White says the new China FTA websites www.chinafta.govt.nz and http://chinafta.nzte.govt.nz are in-depth resources for New Zealand companies, and include content on the agreement and information on doing business in China. 

NZTE has been strengthening its operations and programmes for China in order to assist businesses to build capability and strong in-market connections. An important development is the extension of NZTE’s Beachhead Advisory Board programme to China. This programme will give firms access to advisors with strong market knowledge, networks and connections. 

A new Concept Centre for Shanghai planned for later this year is a business-to-business initiative that will help companies build connections and a long-term presence in China. It will also enhance the visibility of New Zealand as being a serious and committed player in the China market. NZTE is also looking at establishing up to five new offices over the next four years in some of China’s rapidly growing second-tier cities. 

“We are also organising a return presence at this year’s Food & Hotel China trade fair in Shanghai in December,” says White. “China’s fast-growing economy, and huge and expanding middle class, are fuelling big investment into the food industry in general. 

“Another driver in the food service sector is the huge development in four and five-star properties in Beijing and Shanghai in preparation for this year’s Olympics and the Shanghai World Expo in 2010.” 

He says an increasing and positive trend is also the number of New Zealand companies establishing a base on the ground in China to look after things such as marketing and after-sales service, enabling them to speed up the development of meaningful relationships.  

By New Zealand Trade and Enterprise

Contact: to contact NZTE staff regarding China, visit http://www.nzte.govt.nz/section/14482.aspx