Hastings District Council is an enabler for the enormity of businesses with China, says Mayor Lawrence Yule.
Contacts that have evolved through the sister-city relationship with Guilin, and the cut-through of mayoral status in China, are a ready resource for Hawke's Bay businesses, he said.
"I think we are on the cusp of doing some real good things with China and that has taken quite a long time to build. It is all about relationships with people. You don't rock into China with a suitcase full of goods and say, 'Hi I'm Joe Blo from Hastings and I've got a widget and I need to sell you four million'. It might take four visits."
Mr Yule's latest trip to China was to follow up the 30-year anniversary sister-city celebration with Guilin. It is believed to be the oldest sister-city relationship in any New Zealand or Chinese city.
It was instigated by the late Dr Don McKenzie who propagated fruit from China, brought it back into New Zealand and developed kiwifruit.
Mr Yule said after the latest trip he was more sure than ever that China was an opportunity too good to ignore. "I've been up to China a number of times but in my view this time was the most significant, not only for the 30 years, but because the opportunities are there like I haven't seen before.
"The middle class is dramatically growing and they want a lot of things Western. Particularly you see the dramatic influences from when I first went 12 years ago to now. The most noticeable change is the change to motor vehicles. Audis, BMWs, they're all there in their millions when they weren't there 12 years ago."
He said there are substantial opportunities in wine, olive oil and tourism - particularly with golf.
But other opportunities were abundant. "We had a request for a couple hundred of tonnes of sheep meat-based products per month.
"I'm trying to get the two parties together and make them see how real and how possible it is. The other demand is in milk powder, baby's formula, because we are perceived as clean, green and safe. They want the best for their children.
"Money is no object to people in that market and I don't think New Zealanders, unless they've been there, can understand the quantum of the wealth. I'm told there is 250 million millionaires."
Mr Yule made a side trip to the northern China city of Yantai because of links through Paratua winery, which has been bought by a New Zealand/Chinese company. It has opened a shop in Yantai stocking Paratua and Sileni wines. "That relationship is important. Not only have they got their wine in there but they are doing a joint venture with the Opotiki District Council and local iwi to farm sea cucumbers."
The Kiwi mindset that Chinese companies only seek to take money out of New Zealand was wrong because many were looking for havens for their money, Mr Yule said.
"They want to invest in good businesses in New Zealand, they want to make profits in NZ, they want to leave the money in NZ, they want to pay the tax in New Zealand and they want to know when they come out to New Zealand, should they ever get citizenship, that that is theirs and nobody can take it off them."
Mr Yule said even a niche like corporate gifts could prove enormous. "The council hosted a business delegation from Shanghai and took them to Elephant Hill winery for a lunch. They liked the wine so much that two weeks later they rang up and asked for a container for corporate gifts for one of the people that was in that party.
"There is now an Elephant Hill wine shop at that company's city, which is now Elephant Hill's distribution hub into China."
He said registering with the council's economic development team was a good start for Hastings businesses wanting to do business in China. "I am a supporter of that long-term game plan. If we do that then everyone will eventually benefit."
Councils have a mandate to help economic prosperity, which is why the council has expanded its economic development team, he said. "If we just stick to rubbish rates and roads, who is going to put resources to try and drive some of these things which take quite some time to come to fruition? Who's going to do it? The private sector usually won't."
patrick.osullivan@hbtoday.co.nz