Opening Doors to China : New Zealand's 2015 Vision - Te Puni Kokiri

20 Opening Doors to ChinaOpening Doors to China 21How will we achieve this goal?China high-growth companies projectA substantial group of New Zealand Trade andEnterprise’s (NZTE) customers have Chinaas a priority market in the short and mediumterm.NZTE has assessed the needs of thesecompanies and will implement a project tohelp them realise their full growth potential inChina. Through this project NZTE is targeting50 or more successful, profitable and fastgrowingcompanies in China by 2015.The project will help exporters to analyse andunderstand the market; develop products andservices for China; and identify appropriatepartners and business models. Expert advisorswill also be assigned to assist these companiesand, where appropriate, raise capital to supporttheir growth. These services will be tailored tocustomers and will be additional to the suite ofadvisory services already offered by NZTE.Emphasis will also be placed on collaborativeinitiatives where market entry and developmentwill occur more effectively.Target priority sectorsThere are some evident sectors of opportunityfor New Zealand businesses in China andstructured programmes have been put inplace or are in the process of being developedto realise their potential. Priority sectors arefood and beverages (notably seafood and wine);agribusiness (including food safety); high-valuemanufacturing across a number of sub-sectors“Companies must have both theflexibility to adapt and the skills toinnovate to keep in step with theChinese market’s exciting development.”McKinsey 2011 Annual Chinese Consumer reportsuch as aviation, marine, commercial fit-out,food processing technologies, etc; informationand communication technologies; and naturalproducts and bioactives.Each sector programme will realise marketopportunities for all New Zealand exporters andheighten the awareness of their capabilities andexpertise amongst Chinese customers.During 2012, the ‘Chef-in Market’ programmewill be intensified based out of New ZealandCentral in Shanghai; a comprehensive winepromotion will be developed and implemented;further support will be given to collaborativeand individual initiatives in the seafood sector;a wide-ranging research programme will beundertaken in niche areas; and a programmeof business missions into and out of China willbe implemented.Growing the base of China-ready exportersRecognising the need to grow the volume ofNew Zealand companies ready for the Chinamarket, NZTE will build on its successfultraining programme for businesses at the earlystages of their preparation for China. Thecourses have been offered nationwide sinceearly 2011 and their breadth and reach will beexpanded. These will assist companies with thebasics of doing business in China andwill identify training needs for furtherdevelopment for those wishing to intensifytheir engagement. NZTE will also work withother agencies and trade organisations tostimulate broader interest and awarenessof business opportunities with China.Representing New Zealand businessin ChinaIn close collaboration with other governmentagencies, NZTE will monitor and communicatechanges to the business environment in Chinathat may affect New Zealand’s commercialactivities. A key component will be to assistcompanies with the complexities of exportingto China and deal with the rapidly changingregulatory environment. Where appropriate,NZTE will work alongside companies toaccelerate their market entry and consolidatetheir position in the market.A close working relationship with counterpartChinese entities maintained across theNZ Inc network will also help companiesthrough a potentially complex and unfamiliarregulatory environment.3Grow services trade with China(education by 20 percent, tourismby at least 60 percent, and otherservices trade) by 2015High value, profitable non-commodity growthwill be essential to achieving New Zealand’seconomic goals. As with our goods trade, wehave scope to do better in our traditional serviceexports to China – education and tourism –and to develop other areas, such as design,architecture, consulting, IT, environmentand food safety services.Education: grow value of educationservices by 20 percentThe Government has set a goal of doubling theeconomic value of export education services to$5 billion by 2025. China is the largest source offoreign students in New Zealand with 21,000enrolments in 2010. Around 90 percent are inthe tertiary sector and it is estimated Chinesestudents add approximately $600 million tothe New Zealand economy annually.With improved targeted promotion by the newCrown entity, Education New Zealand, andgreater cooperative promotional spend amonginstitutions, the Government hopes to increasethe market share of Chinese students, withoutcompromising the diversity and capacity oflearning institutions.China expects New Zealand to provide statebackedquality assured international educationservices for Chinese students. This is crucial ifthe value of the New Zealand education brandin China is to be protected and enhanced.China is also the main market for offshoredelivery of New Zealand education services. Ourcompetitors are establishing campuses in China.