China Business: $30b game changer for Auckland

David Caselli, General Manager Business Attraction and Investment for Auckland Tourism, Events and Economic Development (Ateed).

Auckland and its economy will be transformed by New Zealand's ambitious new goal for two-way trade with China of $30 billion by 2020.

Over the past year Auckland has benefited from significant Chinese investment in diverse sectors, including food and beverage, dairy and banking.

"Chinese interests are fuelling New Zealand's economy, and increasingly becoming crucial for Auckland's accelerating economic growth," says David Caselli, who is General Manager Business Attraction and Investment for Auckland Tourism, Events and Economic Development (Ateed).

Auckland's economy grew 3.3 per cent in the year to March 31 2013, second to Christchurch's unique post-quake recovery growth of 6 per cent, and Caselli says a key factor in Auckland's growth is the continued emergence Chinese trade and investment.

Caselli used his four years' experience doing business in Shanghai to help establish Ateed's China Business Advisory group. Its members are influential Auckland-based Chinese business people who support Ateed's strategic approach to seeking sources of Foreign Direct Investment (FDI) and trade with China.

This group provides valuable advice on areas from trade and investment to screen attraction, student attraction and high-value tourism. The group has also been able to raise wider issues the Chinese business community is experiencing. Ateed does its best to help, or engages the wider Auckland Council organisation or central government.

Caselli points out that delegations from China are among those coming to Auckland to consider investment in infrastructure and businesses.

"Auckland's plans around the City Rail Link, the Puhoi-Wellsford highway, Penlink and the build-out of the Wynyard Quarter point to more and more opportunities for international investment, and all of these are of interest to Chinese investors."

Chinese interests have already made strategic investments in key commercial and residential sites across Auckland - most notably the Elliot Towers site owned by CNP Investments, and the Whangaparaoa residential development by Top Harbour.

Caselli says though Auckland can expect to see more Chinese investment, the council and Ateed continue to seek to understand and support the growth aspirations of diverse multi-national companies invested in Auckland.

Ateed's international aftercare programme "Aroha Auckland" follows up with companies that have made significant recent investments in Auckland.

There are ongoing negotiations to finalise several film co-productions - part of Ateed's film agreements with the governments of Shenzhen and Qingdao - and work on the attraction of hotel developers to Auckland.

Ateed recently extended its partnership with China Southern Airlines, which is aimed at bringing high-value visitors from China; its sponsorship of the China Cup yacht regatta are expected to have significant benefits for Auckland's tourism and marine sectors.

"The broadening interests and relationships between Auckland and China not only benefit corporate investment", says Caselli. "There are follow-on benefits such as significantly increased Chinese international student and visitor numbers. This interest will support Auckland's growth, with an increasing capacity of new hotels, the airport extension and the proposed New Zealand International Convention Centre."

Caselli says the region's importers, exporters, port and airport should look to benefit from the Government's target of New Zealand's two-way trade with China doubling to $30 billion by 2020.

Auckland already contributes 34 per cent of the national GDP, and Caselli says the council is aware of increasing pressure for business land and infrastructure, and the need to grow the city in a fiscally prudent manner.

"The region's GDP growth target of 6 per cent per annum, and council's focus on controlling debt levels, attracting and retaining offshore partners and investors is increasingly important - and China has a major role to play."