Bay of Plenty Times
  • Bay of Plenty Times home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport

Locations

  • Coromandel & Hauraki
  • Katikati
  • Tauranga
  • Mount Maunganui
  • Pāpāmoa
  • Te Puke
  • Whakatāne
  • Rotorua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Thames
  • Tauranga
  • Whakatāne
  • Rotorua

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Bay of Plenty Times / Business

Sky's the limit for business in China

Bay of Plenty Times
4 Aug, 2010 03:12 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

There are 1.4 billion people in China and wherever you go, it's big - the buildings, roading and even the World Trade Expo.
But doing business in China is not as scary as it may seem. The Chinese I met in Shanghai and Yantai are friendly and courteous, and many of
the people you end up dealing with speak English, or some of it.
New Zealand trade to China has been dominated by the big boys, such as Fonterra and Zespri International, but smaller, enterprising exporters can make headway in the Chinese market with quality, niche products.
A new wealthy class is emerging in China - its economic growth is running at about 10 per cent a year - and the higher-earning Chinese in the modern cities are "in love" with Western goods, especially cars and clothing.
New Zealand's and the Bay's export opportunities still lie in the food and beverages sector. While I was in Shanghai, I read that the Chinese Government is cracking down further on food-safety standards.
Green, clean, 100 per cent New Zealand can come into play.
Help and support is also available for local companies wanting to export to China - or manufacture their products there, and sell on the mainland and to other parts of the world.
NZ Trade and Enterprise (NZTE) has set up New Zealand Central in Ma Dang Rd, Shanghai, and businesspeople making a start in the vast Chinese market can use it as a base for meetings, functions and establishing contacts.
The NZTE staff there are superb at breaking through "the confusion of China" and setting up appointments, and making other arrangements.
Further north on the coast, Yantai - Tauranga's sister city for 24 years - is a useful point of entry for manufacturers/exporters into China.
The Yantai Investment Development Board (YIDB) goes out of its way to help an overseas company set up "a workshop" in its bustling, growing city.
"Five to 10 years ago the investors would manufacture here and re-export, but not any more," said Michel Humbert, YIBD senior adviser.
"The investors, many thousands of them, are manufacturing here and selling in the Yantai, Shangong Province and China domestic markets. Every month new investors are arriving."
The YIDB, which has a staff of 40, will take the investors under its wing. The advisers will take them for a tour of the city to find a suitable manufacturing site, small or big, and they will complete all the necessary paperwork free of charge.
Land, mainly owned by the Government, is cheap and the leases are reasonable. The YIDB advisers will also find suitable labour for the new investors.
"We have a lot of labour candidates," said French-born Mr Humbert, who has become a honorary Chinese citizen. "In the 10 years, we have had no complaints about not having enough skilled workers."
The corporate tax in China is 25 per cent but it falls to 15 per cent for high-tech industries.
Yantai has a tax-free export processing zone if a company uses it for its total production, either importing supplies or exporting product. A proportion of tax is charged according to the percentage of the company's total production.
Yantai, one of the six Golden Cities in China, has gross domestic product (GDP) of 380 billion yuan, or ($76 billion), and more than 5000 medium and large manufacturers operating in the country.
It has developed a well-planned and well-designed Yantai Economic Development Area (YEDA), as well as the High-tech Industry Development Zone.
Yantai has always been famous for its tourism and winemaking (supplying 40 per cent of China's production), but it has mushroomed into car making, shipbuilding particularly oil drilling platforms, high-tech industries involving computers and mobiles, and gold processing for jewellery. It is also China's largest aquaculture centre.
General Motors, for instance, has moved in and manufactures 300,000 of the latest compact Chevrolet cars a year, plus 700,000 car engines.
Yao Jin, project manager for the downtown Yantai Zhifu Investment Investment Board, has a young family of two and he told me that New Zealand beef and milk powder were sought after.
"I have Chinese friends who are eating more and more beef steak, and I order New Zealand milk powder online because I believe in the quality of the product," he said.
"The Chinese powder has a lot of chemicals in it. From New Zealand, I know it is coming from a natural, clean environment."
Mr Yao said there was also an opportunity of importing bulk wine into Yantai. French company Millesimes in Yantai buys wine from France, Chile and Italy and mixes it with the Chinese product.
"They are very happy to do business and import wine from New Zealand," he said.
Companies from around the world have invested in the Yantai economy, even one from Iran. But Mr Humbert was quick to point out that none have come from New Zealand.
"Hurry up and do some investing in Yantai," he told the Tauranga delegation during its visit to the sister city last week.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Bay of Plenty Times

The secret sauce of the bar named NZ's best

08 Jul 10:00 PM
Premium
Opinion

Balancing power: What the employment law changes mean for you

06 Jul 05:00 PM
Bay of Plenty Times

Data show more Kiwis struggling to pay bills, behind on mortgage payments

30 Jun 09:57 PM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Business

The secret sauce of the bar named NZ's best

The secret sauce of the bar named NZ's best

08 Jul 10:00 PM

'I’ve always wanted to be called an institution – that’s my goal.'

Premium
Balancing power: What the employment law changes mean for you

Balancing power: What the employment law changes mean for you

06 Jul 05:00 PM
Data show more Kiwis struggling to pay bills, behind on mortgage payments

Data show more Kiwis struggling to pay bills, behind on mortgage payments

30 Jun 09:57 PM
Premium
High-profile Tauranga retail site sold for $18.6m to local investors

High-profile Tauranga retail site sold for $18.6m to local investors

30 Jun 01:28 AM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Bay of Plenty Times e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Bay of Plenty Times
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Bay of Plenty Times
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP