By BRIAN FALLOW
"Asia is back," says Asia 2000 executive director Tim Groser.
Underpinning the rebound in New Zealand exports overall was the stunning turnaround in the fortunes of the Asian crisis economies, said Mr Groser.
Korea and Malaysia grew around 13 per cent over the past year and even Indonesia managed nearly 4 per cent.
The upshot is that, in the 12 months to April, exports to New Zealand's top 10 Asian trading partners neared $8 billion, exceeding the previous peak of $7.5 billion just before the onset of the crisis.
But it is not just the trade statistics which testify to Asia's central role in New Zealand's export boom. Another straw in the same wind is the fact that the Asia 2000 Foundation has attracted more than 500 registrations for seminars on doing business in China that it is holding in the four main centres next month.
For the seminars, Asia 2000 is bringing in business people mainly, but not exclusively, New Zealanders or Australians who have had up to 20 years' experience of doing business in China.
Mr Groser said firms needed to have a very clear sense of the risks as well as the opportunities.
They should be slow to pick their Chinese partners - a critical decision.
"You need to make sure your expectations and theirs are aligned. Don't promise the world and don't expect promises from the other side to necessarily be fully borne out.
"A lot of companies have vastly overestimated the importance of political connections, when what really matters is a sound business plan."
Another mistake is to look towards the state sector.
"Such has been the restructuring of the Chinese economy that the private sector now represents about 43 per cent of gross domestic product, which is only about 10 percentage points less than a typical OECD mixed economy," said Mr Groser.
Cultural sensitivity was also fundamental in Asia. "What impresses people here isn't necessarily going to work in other cultures."
Asian economies find wings
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