One of the key things Kiwis are warned about when it comes to doing business in China is not exchange rate volatility as one might note for Western economies, shipping costs, or even access rule changes. It is that the culture of doing business in China is different from New Zealand and it is necessary to learn about those differences to minimise misunderstandings with Chinese partners.
Pollution in China Will Push NZ House Prices higher
Thursday April 25th 2013
Concerns about air pollution in China are soaring and people are talking more and more about migrating or at least getting their children out of the country. There are three implications for NZ from this suddenly developing trend which adds to developments stemming from rising incomes and increasing ability to get overseas.
Based on last month’s BNZ-REINZ Residential Market Survey, the comparability of key results with those from a similar survey by the National Association of Realtors in the United States, and factors related to sample size and outcomes regarding investment, I am prepared to say that nationwide some 4% of house sales are to people offshore who intend staying offshore, with this figure rising to 4.6% in Auckland.
Since October 2008 New Zealand’s exports to China including Hong Kong have grown by almost 160%. To the rest of the world our exports have risen only 9%. Our primary goods exports to China have grown by 179%. Exports of non-primary goods have grown by 27%. (The non-primary category excludes ”NZ Miscellaneous Provisions”). Over the same period of time primary goods exports to the rest of the world have fallen by 5% while exports of non-primary products to the rest of the world have fallen by 1%.
In February I published a 15 page paper containing 55 factors helping to account for Western uncertainty about what the rise of China means. Each month in this section we shall examine some of the cited factors -keeping in mind that one can construct lists for all other countries as well. (more…)
With the rapid increase of New Zealand and Australian enterprises looking to do business in China, the challenge of expanding international trade while managing cash flow risks is a key issue that needs to be carefully managed.
Since May 2011 we have been running a survey of real estate agents around New Zealand called the BNZ-REINZ Residential Market Survey. The over 10,000 licensed agents are asked for their perceptions as to whether there are more or fewer people attending Open Homes, whether auction clearance rates are rising or falling, whether fewer or more first home buyers and investors are in the market, whether prices appear to be rising, and who appear to be more motivated to transact – the buyers or the sellers.