Forum Archive Index - March 2004

[mixtrader <mixtrader@clear.net.nz>]

I agree that it is a smart move to get alongside the Chinese in terms of a trade deal.  It is really positive for the larger New Zealand exporters that have already developed relationships in this region.

 

For potential (new) exporters to the Chinese market, there is a huge learning curve in front of them as they come to terms with dealing in a country that has a greater regard to establishing long-term relationships rather than the focus of a single deal.

 

Certainly appears better than dealing with Uncle Sam where the term free trade only means free access for USA exporters while imports to the USA remain subject to a range of protectionist strategies as determined by the power of respective lobby groups across the entire USA business community.

 

One major problem that we (and every other economy on the globe) will face will be those areas/industries in which China has significant competitive advantage - to date textiles has been put forward - that generally arises from their vast pool of less expensive labour.

 

Probably the main reason that China will develop into the biggest economic engine on the globe is that they did not follow the IMF prescription when they started to move towards a market based economy some 20 years ago.  While there are still plenty of details to work through, China has generally put in place the regulatory environment necessary to conduct business in the global economy.  As long as reasonable care is taken, people exporting to China will not encounter the same barriers to trade that are experienced with the Japanese and American markets, and once the pace of business is adjusted to, trading with the Chinese is a pleasurable experience.

 

As far as the NZ Labour party is concerned, they have really been a bystander that got lucky enough to deliver the good news while they still held the reins of power.  There have been ongoing representations between NZ and Chinese businesses for some considerable time that have contributed more through their established relationships than the Clark government is capable of.  Still, our Helen is a political opportunist and will bask in the limelight that such a deal provides. 

----- Original Message -----

From: philip@goodreturns.co.nz

To: Sharechat@Sharechat. Co. Nz

Sent: Wednesday, March 03, 2004 11:22 PM

Subject: [sharechat] Trade deal with China

What do you think of this proposed bi lateral trade deal with China.
It seems to be, assuming FTAs are OK, that doing deal with China is far smarter than doing the deal with Uncle Sam.
If you believe many of the economic dudes out there China will, in the not too distant future, be the major world economy and boy could they do with some red meat, milk and maybe a bit of wine.

Overall a stunningly smart move.

PM