China Country Brief - December 2011.pdf - PrcLive

eing used in furniture and other value-added wood products for re-export and domesticmarket applications.While China’s furniture and finished goods industry will remain a key market for NewZealand pine timber, the rapid rise in China’s fit out and construction markets offersopportunities for New Zealand pine timber. There is also a growing demand for treatedtimber, especially for landscaping.AgritechnologyChina’s budding dairy industry has been identified as one of the largest future markets ofopportunity. New Zealand’s style of dairy farming lends itself to the Chinese situation,particularly in southern China, with farmers seeking on-farm techniques to help developtheir farming models and improve animal health. As a world-leader in agriculturaltechnologies, New Zealand is ideally placed to provide dairy production and processingtechnologies and to become a long-term business and investment partner in thedevelopment of China’s dairy industry.EducationChina’s international education market is becoming increasingly competitive amongstforeign education providers. It is an attractive country in which to market as the totalnumber of Chinese students going to study overseas has been increasing steadily. Mostinterest from Chinese students is around undergraduate, postgraduate and vocationalstudy. China is the number one source of international students in New Zealand (21,258in 2010). Institutions may consider the strategic investment of time and resources into thebuilding education relationships with Chinese counterparts for the long term, with the aimof developing steady business opportunities and cooperation.Environmental TechnologyChina has in the past received substantial loans aimed at correcting the degradation ofChina’s environment but despite this, huge problems remain, thus generating significantopportunities. The environment is an important concern for many local governments inChina. Initial focus is on treatment of waste water, soil remediation, sewage and solidwaste but also on growing noise and air pollution. The key requirement is to identifyprojects that match New Zealand capability and understand how these projects arefinanced. Many projects in this sector will require local partners.ManufacturingFor New Zealand companies, manufacturing in China generally hinges around reducingmanufacturing costs, however the sustainability of this advantage is questionable. Otherstrategies to consider should include enhancing competitiveness and value addedopportunities by way of developing the company's international relationships. Somecompanies have invested in manufacturing in China to supply their China-based clients.Strategies can also be positioned around reducing component costs in existing or future8/Exporter Guide | China | Country Brief | December 2011