Sister Cities NZ 2012 Conference –
Celebrating Relationships
Focus: Youth, Education & Business Development
Kefeng Chu
Director China Operations
New Zealand Trade and Enterprise
New Zealand’s exports to China have been growing
strongly while the trade deficit has been shrinking
Trade with China 2006-2011
NZ $BN
It is not just about milk powder and logs
• $3.5 billion out of $5.9 billion of New Zealand’s exports to China
are in these two product categories.
• The rest $2.5 billion is not dairy and wood products.
• How big is $2.5 billion? As recently as 2008 total NZ exports
including dairy and logs were just over $2 billion.
• So we can say the our broader economic relationship with China
is not just benefiting our dairy and forestry sectors.
- Hon Tim Groser, Minister of Trade 15 March 2012
NZTE as a lead agency for Goals 2 and 4
Sectors we focus on for the China market
Non-commodity
Commodity
Value (NZ$ Bn)
12
11
10
9
8
Agritech
ICT
7
Spec. Man.
6
5
4
Food &
Beverage
3
2
1
2008
2011
2015
Illustrative
…for example, putting NZ on the menu
..for example, kiwifruit is now in reach of the new Chinese middle
class
Exports of kiwifruit to China 2003-2011
NZD
million
…It is also about improving investment flows
State Owned Enterprises
Sovereign Wealth Funds
80%
Private companies
VC and PE funds
Migrant investors
HNWI
20%
• China invested approximately US$60 billion
internationally in 2010-11
• In 2015, China’s overseas direct investment
will reach US$500 billion (from US$4b in 1990
to US$249b in end of 2009)
Into
• NZ companies
• Infrastructure
• NZ funds
We are sharpening our focus… strategy is about choice
Export goods earnings, year to June 2011*
$36
260
Companies
earning >$25m
billion
$5
billion
$3
billion
2000 NZTE
CUSTOMERS
460
Focus
500
Companies
$5-$25m
12,000
Companies
< $5m
Number of New Zealand exporters
*Figures are rounded to the nearest billion and are for exports of goods only.
**NZTE customer numbers include service companies
NZTE: key facts
• 2000 customers (‘Focus 500’)
• Crown entity, private Board
• 550 people (50% offshore)
• 36 international offices
• $150 million investment
• Our purpose…
• Grow New Zealand companies
internationally
• Build capability in NZ
• Partner in market
“Navigating China”
• Booklet providing practical
advice for NZ businesses
looking to set-up or expand
in China
• Case studies from NZ
business people with handson experience of doing
business in China
• Call NZTE 0800 555 888 for
copies
Into NZ
companies
• Infrastructure
• NZ funds
Opportunities and Challenges
•
•
•
•
Food and beverage
Clean & green technology
NZ pure/safe foods/Maori culture brand
NZ’s small size outside dairy – develop key
relationships, high value added products, IP,
consortium approach, joint venture
Sister cities
· Political - to consolidate relationships with sister cities
· Commercial - to open doors and leverage Mayor’s influence to build
connections in China
• Cultural and People to People
Mayoral Delegations
•High status of a Mayoral mission
•Opening doors/ facilitating business discussion
•Establish high level relationships
•Add ‘credibility’ to companies
SECTOR GROUPINGS
• Focus on particular sectors (Food and Beverage, ICT, Tourism, Aviation,
Education, investment, etc)
• Consider representation from Chinese, Maori, NZCTA, banks or investment
consultants