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

22 Opening Doors to ChinaOpening Doors to China 23Universities New ZealandDerek McCormack, Vice-Chancellor ofAuckland University of Technology andoutgoing Chair of UniversitiesNew Zealand, says the export educationcrash of almost a decade ago showed thatNew Zealand could not rely on a mass ofstudents from a single source country.New Zealand needs to think smarter –looking at a much broader profile ofsource countries together withcollaborations which provide a richerexperience and greater benefit to thecountries we work with.With that in mind, he says, universitiesneed to focus on the development ofhigh-quality research and educationalpartnerships, from research collaborationsNgai Tahu HoldingsTrevor Burt spent five years living andworking in China before taking his positionwith South Island iwi Ngai Tahu.As chair of Ngai Tahu Holdings, he helpednegotiate the deal to develop a consortiumwith Singapore-based Agria and Chineseagriculture giant New Hope, which hastaken a majority stake in PGG Wrightson.Burt says there are similarities in theoutlook of Māori and Chinese businesses.Both take a long-term view and considertheir dealings to be those of a familybusiness. “When you enter into apartnership, you need to align and thereis a similarity around the way Chinese andMāori think.”Māori businesses should make the most ofthis, he says, but not expect that they willresult in any advantage beyond some earlygoodwill. “It’s got to be commercially soundand sensible. You can’t broker a deal out ofgood feeling.”Burt’s experience is that there is no magicto dealing with China – businesses justneed to be forewarned about the role ofrelationship-building and anticipate theto student and staff exchanges and jointlyofferededucation programmes.Chinese students account for about 6000of the 17,000 international students inNew Zealand universities and educatingthem will continue to be an importantsource of income. But McCormack sayssustainable, high-quality outcomes inbusiness, diplomacy and industry willgrow from postgraduate collaborations.In this way, New Zealand will be workingalongside and deepening engagementwith China in knowledge exchange.“That’s what we should be focusingon and growing.”www.universities.ac.nznegotiation process may take longer. Hesays, if you can source them, it’s invaluableto have people on your team who arefamiliar with Chinese business.All businesses should recognise that theirfirst partnership with a Chinese entity couldbe beneficial beyond the deal on the table.For example, New Hope has interests indairying which is an area Ngai Tahu is keen todevelop so there is potential for the businesspartners to work together in other areas.Burt says a good portion of Ngai TahuHoldings’ earnings flow from China. It isthe largest export market for Ngai Tahu’sseafood business, and Chinese are thefastest growing client group for the tribe’stourism ventures, which include ShotoverJet and Huka Jet.The partnership with Agria and New Hopewill help Ngai Tahu to better understandthe Chinese market so it can make the mostof opportunities to increase the flow oftourists through its New Zealand businessesand maintain its lucrative position in theseafood industry.www.ngaitahu.iwi.nz“…companies trying to succeed in China need toremember that a number of Chinese cities are largerthan many European countries.”McKinsey 2011 Annual Chinese Consumer reportTwo thousand Chinese students are enrolledin China-based New Zealand programmes.There is potential to more than double thisnumber and to grow associated earnings fromconsultancy and training services.Chinese students have the second highesttransition rates to work and residence inNew Zealand, and therefore make animportant contribution to our labour force,helping to lift productivity rates. New Zealandmust invest in thorough assessment andverification of applications to study and live inNew Zealand, while avoiding the establishmentof unnecessary barriers to bona fide Chinesestudents and migrants.international STUDENts by countryCHINASOUTH KOREAINDIAJAPANSAUDI ARABIA4.7%8.7%13.4%13.2%24.7%Distribution of international fee-paying students by Country of Citizenship (2011)Source: Export Education Levy Key StatisticsHow will we achieve these exporteducation goals?Complete an in-depth education marketanalysis and develop a targeted, Chinaspecificmarketing and promotioncampaign for New Zealand education.Explore and facilitate possibilities formutual recognition of professionalqualifications.This will enhance the attractiveness of NZqualifications for Chinese students in acompetitive market.Extend the number of NZ private trainingenterprises listed on the China Ministryof Education Study Abroad website.