New Zealand Businesses Eye China With Increased Optimism, Urging The Coalition Government To Strengthen Business Ties

• 83% of New Zealand Businesses in China rank market a top tier priority for investment.
• Brand NZ remains strong with 74% of businesses saying that New Zealand’s reputation for sustainability and environmental care enhances marketing in China.
• New Zealand businesses operating in China are calling on the coalition Government to strengthen business ties.

New Zealand businesses are optimistic about future opportunities in China according to the 2024 Business Outlook Report released by The New Zealand Business Roundtable in China (NZBRiC).

The report, published today, finds that more than 8 out of 10 of New Zealand businesses surveyed rank China among their top three priorities for global investment, while 88% intend to increase or maintain their investments in China over the next three years.

Mark Anderton, Chair of NZBRiC says the findings emphasise the wealth of opportunities in China despite the recent economic downturn.

“The results of this year’s survey can be categorized by three themes: Opportunity, Confidence, and Cooperation. The groundwork laid by political leaders has strengthened the bilateral relationship, encouraging businesses to engage in overseas trade and explore opportunities beyond their borders,” says Anderton.

Optimism in Growth and Investment Opportunities

New Zealand businesses operating in China are increasingly focusing on tier two city opportunities. Over a third (38%) of businesses rank this as their number one priority, with two thirds having it in their top three opportunities.

“While declining property prices and rising unemployment have impacted consumer confidence, New Zealand businesses are seeing opportunities expand their sales and distribution beyond the tier one cities of Shanghai, Beijing, Guangzhou and Shenzhen, with 61% of New Zealand companies planning to increase their China headcount within the next three years,” says Anderton.

On the market overall, while 76% have a positive view for the coming year, almost all (93%) indicate this for the next three years, pointing to strong optimism that China’s economy will bounce back from the post pandemic slowdown.

84% of respondents say their company has increased or maintained total investments in China over the past three years, with one in five significantly increasing investments. Nearly nine out of 10 (88%) also intend to increase or maintain China investments in the coming three years, with one in five again planning to significantly increase investments.

These figures represent an increase from last year’s survey, which may be related to businesses feeling more confident in a post-COVID operating environment.

Brand New Zealand Favourable

Almost three-quarters of respondents say awareness of New Zealand’s brand in China is either strong or very strong, a notable increase from just over 50% last year.

However, the country-of-origin brands of Ireland and Switzerland, and the like, present significant competition.

At an event launching the report in Auckland this morning, David Boyle, CEO of Primary Collaboration NZ, said Brand New Zealand is recognised by Chinese consumers, particularly for the country’s commitment to sustainability and environmental protection.

“We are seeing an increase in consumer awareness and demand for high-quality and sustainable products, particularly among younger consumer segments in China who value country of origin, labelling and packaging. "The majority of respondents (74%) agree that New Zealand’s reputation for sustainability and environmental care enhances marketing in China. However, this does not automatically elevate the perceived value of environmental performance, as consumers prioritize health benefits over environmental impact. New Zealand brands need to communicate their sustainability story in a way that resonates with their target segments.” Boyle added.

Bilateral Relationship and Trade Links Strong, But Missing Room for Improvement

This optimism is supported by a robust and stable trade and investment relationship between New Zealand and China, as demonstrated by Premier Li Qiang’s visit to New Zealand in June 2024 and China’s decision to grant visa-free travel to New Zealanders which is anticipated to deliver a further boost to trade relations.

New Zealand businesses operating in China are now calling on the coalition Government to streamline the visa application process at the New Zealand border to ensure smoother business travel for Chinese nationals.

“Two-way travel is crucial for building strong business relationships, enabling customers and key stakeholders to experience New Zealand and for New Zealand executives to understand the complex China market” says Anderton.

“The China market remains an important and profitable opportunity for New Zealand businesses. China’s scale, breadth and New Zealand’s market access offer growth prospects which are hard to find elsewhere, and we encourage any New Zealand business who is considering China to read the report and reach out to NZBRiC to better understand the support available for New Zealand businesses,” he added.

New Zealand businesses are conscious of their exposure to geopolitical risks when doing business in China. 93% of New Zealand businesses surveyed say that the New Zealand- China relationship is an important consideration for their business in China.

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