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“Getting it right” in Shanghai, whether on behalf of a government or a private sector corporation, requires recognition that Shanghai is two almost self-contradictory things at once.
Shanghai is a modern world city of considerable sophistication, technological achievement and energy. The Maglev, the world’s fastest passenger train, is significant more for what it says about Shanghai than in itself.
But at the same time Shanghai is very much a Chinese city. Despite the modernity and flourish, under the surface aspects of Shanghai are not very Western at all. In Shanghai, where the pace of change is rapid, relationships are as important, and take as long to develop, as they always have in China. In official or business dealings, don’t overlook the need to painstakingly build up relationships that will be necessary to achieve influence and credibility.
A strong sister city link between Dunedin and Shanghai has come out of committed relationship-building. Two more different cities would be hard to find but Shanghai clearly values the relationship and Dunedin has benefited. Their ties have contributed to the overall bilateral relationship.
Why Shanghai? China’s largest commercial centre, and important politically. Ambitions to turn Shanghai into an international trade and financial centre will reach a peak when it hosts World Expo in 2010. 70 million visitors are expected and New Zealand will be there in a big way.
Historically Shanghai has incubated a number of national leaders. This trend continues. From this perspective, it is even more important to ensure key people know about New Zealand.
Shanghai continues to lead on further economic as well as social reform. It is the heart of one of China’s growth engines, the east China Yangtze River Delta (Shanghai Municipality, Zhejiang and Jiangsu Provinces). New Zealand has built up good relationships with government and commercial sectors in this region – Minister of Trade visited following the FTA signing.
Unsurprisingly, NZ trade with east China has risen steadily (currently 47.6% of NZ/China total trade). The largest concentration of Kiwis in China is in Shanghai (1120). Sectors of opportunity are F&B; dairy; wool; wood and pulp; ICT; specialised manufacturing; tourism; education; engineering, consultancy, financial and training services; S&T co-operation. Kiwi networks are being formed - KEA China is based in Shanghai.
Korea is a country that has come a long way and
is still going places. Per capita GDP is now about
US$20,000. Korean consumers are increasingly sophisticated
in their choices as well as increasingly wealthy.
The new President Lee Myung-bak has a vision of
economic growth and for Korea to take on an increasing
role and profile internationally - a "Global
Korea". While his targets - 7% growth, to
increase Korea's GDP to US$40,000 in 10 years,
and to move Korea to the list of the world's top
7 economies (ie is currently 13th) will be challenging
in the current economic climate, prospects for
modest growth (4-5%) in the near term are still
good. Korea has also been taking some big leaps
forward towards liberalisation and market opening
through its FTA with the US, the opening of its
beef market, and its active FTA agenda. While this
creates some immediate risks and concerns for us
in terms of access of our own goods, and we are
working hard to address these risks by pursuing
a New Zealand-Korea FTA, the bigger story to tell
is that Korea appears to have embarked on a proactive
agenda of reform, deregulation, liberalisation
and market opening. Korea is therefore a country
of current and growing importance and opportunity.
The current policy settings in Korea bode well
for New Zealand. It wants more active relations
with a wider range of countries than it previously
could give attention to. New Zealand is in its
sphere of interest. We have excellent credentials
with which to fix ourselves in that sphere of interest;
our own experience of deregulation and reform,
the role we play as a small but active contributor
to regional and global affairs, - these are admired
and respected in Korea. We have a strong basis
of common interests, common perspectives. Indeed,
few New Zealanders would know just how likeminded
we are with our Korean partners.
More New Zealanders need to think of Korea when
they think of the possibility of doing business
in Asia. We are starting from a very good position.
We have good relationships in place, New Zealand
is well known and liked, - most Koreans have genuinely
warm and positive images of New Zealand - and Korea
is of a size, 48 million, which provides plenty
of opportunity, but is not so large that it is
difficult to comprehend and navigate.
An FTA with Korea would provide the framework for
our businesspeople to pursue these opportunities.
We are pursuing this actively in the hope that
Korea will soon be in a position to consider negotiating
with us once it has completed its other, priority
negotiations.
But we will need a mental shift here in New Zealand,
for New Zealanders to see Korea more firmly in
our sphere of interest, as a country that is a
natural partner for New Zealand.
