This week’s contribution comes from China thanks to help from one of my travelling colleagues who can type but wishes to remain anonymous.  Thanks Andrew…

The purpose of the trip is to explore new business opportunities, retain and enhance existing business, and maintain cooperation and contacts with the movers and shakers of China’s business circles. In my opinion, China is number one in business in the world, certainly the big player in New Zealand’s future in Tauranga in particular. After the last visit in 2005, it was decided that new emphasis was needed to move the relationship up several notches and many changes were made so that council built on past efforts and concentrated on opening doors for Tauranga businesses. This is succeeding as evidenced by the attendance of Madam Lee, Mayor of Yantai and her officials flying down to Shanghai and meeting with our delegation prior to our arrival in Yantai. Also, the Mayor of Haimen came to the meeting and asked for Mayor Stuart Crosby to visit Haimen, a port city about 150km north of Shanghai – population 1.3 million.

Starting from scratch
A small group of us went to Haimen to see business there and how China moves cities and sets up new industrial parks. First they build the infrastructure including four lane roads, then the buildings, then the people. We visited Xinsheng Marine which turns out to have the old boat moulds from Sea Nymph in Auckland, and production is run by expat Russell Smith from Te Puke. An excellent product – there is nothing cheap quality-wise about the finished product. Russell told us there was no future continuing in New Zealand with compliance costs and basic overheads like land price being some of the problem. Tax is lower in China with significant concessions in that area, to joint ventures starting up. They are looking to the USA market with 1000 boats per year in sales. We saw another factory producing outboards and portable generators which had 1000 workers.

Not the NZ way
Everyone seems to be happy and content, although there is no doubt it wouldn’t meet some of New Zealand’s expectations. All land is leased from the state, and some workers get housed and fed on site. Certainly the perception of rickshaws, Mao suits from yesterday is gone from the east coast cities.
On the way up to Haimen, we passed along three toll roads – cost about NZ$25 total. On the six lane highway it’s like dodgems and we swerved to miss a line of stopped semi-trailers on the inside lane.  About 500 metres further on there were two “entrepreneurs” selling lunches to the drivers with the chilly bin set up in the lane! Unbelievable!

Bearing all for the show
The Bay of Plenty had the use of the New Zealand Pavilion VIP lounge at the Expo in Shanghai for four days where all our Shanghai meetings were held. This lounge is really serving the purpose and full credit to the government for spending $30 million in being there. Probably the best people attraction at the Expo is the regular Maori Kapa Haka appearances outside the pavilion.  Two new warriors were co-opted to the great delight of the hundreds-strong crowd. Mayor Stuart Crosby and Simon Bridges MP stripped off their shirts at the behest of the group leader and joined in.  Temperatures were 35-40C, queues for hours, and around 400,000 – 500,000 people per day meant that Expo itself is a harsh experience. We tried to have a look around in between meetings, but it just got too hard, so only managed to see a few of the less popular sites. Expo is a country-by-country promotional show, not a trade fair, and all some countries had was a video show. NZ Pavilion compares very well. Security is tight and each person is scanned, patted down and swept for bombs. A female guard patting me down ran her hand over my tummy, muttering something about body-bombs. While I am no bodybuilder, I didn’t think my little bike tyre warranted that comment.  Good business success is reported by delegates. Opportunities are there for Tauranga and Bay of Plenty business. Any business wanting to know how to do business in China should get hold of Export Bay of Plenty or Priority One. You have to know how to do business in China, be able to supply and (be) on to it. Putting an ad in the paper won’t work in China, and you do business their way.

Future proofing
Interesting landing at Yantai Airport, a shared civilian and military airport where there were a large number of jet fighters in their individual dispersal bays. Korea is just 300km away and presumably the Chinese are watching the situation in the north after recent North Korean threats.
Visited the Urban Planning building – it made your eyes water.  A huge architecturally designed three-storey building with a back-lit model the size of a football field of how they plan Yantai’s future. With a population of 6.5 million and plans for many more, the planners have had a field day.  It even included a 4D movie theatre for 50 or so people, with seats that rolled with the camera. My estimate would be NZ$50 million for the complex.
On Tuesday, we met with the Yantai Investment and Development Bureau run by a Frenchman.  Opportunity for Tauranga business is vast.  All that is required is for opportunists to grasp the mettle.  Export Bay of Plenty and Priority One are the avenues of contact to get things started.