There is a common theme in western business circles that “you either embrace China or get left behind”. This is a concept that many small to medium size enterprises struggle to comprehend and more importantly have little idea of what to do or where to start.

Businesses in the Taupo District are no different and it must be said that very few local businesses/organisations have any direct business to business trade experience with China. This said, the opportunities that are presented are enormous and many New Zealand businesses do not appreciate the positive position that New Zealand has in terms of a global trade perspective. The reason for this is that New Zealand is the first country in the world to sign a free trade agreement with China, the advantages that this presents can not be overstated.

Given this over arching political environment and the preferential treatment afforded to New Zealand, how can Taupo business start to capitalize on these opportunities?

Fritz Frohlke from Enterprise Lake Taupo, recently organised a one day workshop for Taupo Businesses on the subject of “Doing Business With China”, the workshop was fully subscribed with ten local organizations attending.

The work shop was facilitated by Amy Adams of Occam Consulting Ltd. Amy has lived in Shanghai for 12 years and consults to Governments, Local Authorities , Corporations and businesses on how to do business with China. Amy is an expert on western businesses doing business with China but also consults with Chinese businesses on how to do business with the west.

One of the key subjects of the workshop focused on the cultural differences and how this influences business relationships. In essence, the Chinese have the same human needs as anyone else in the world but have different experiences and history which influence their perceptions and values and therefore their communication and business styles. The need to build relationships with the Chinese is paramount to successful business dealings as these relationships “Guanxi” (Gwan she) lead to further referrals which is how most successful business is achieved. This is based on “Confucian Relationships” which are duty based, with relationships defining the person. Guanxi is therefore relationships and connections that create balanced benefits (for all) over time. Saving “face “ is critical in a relationship and a referral to others will not be made if there is any chance for someone to lose “face”. It is for this reason that building the relationship is important.

During the workshop Amy gave participants practical assistance and examples on the do’s and don’ts of the business and relationship building process with the Chinese, in a business context.

One way to assist in the building of relationships is the Sister City concept. The reason for this is that referrals are made from a high level in the local government and this either by passes or certainly fast tracks much of the spade work that needs to be done, to get “a foot in the door”.

Taupo District Council have a Sister City relationship with the Chinese City of Suzhou and while this relationship is really just beginning, it offers local business a real opportunity to get in on the ground floor. Any one interested in doing business with China are encouraged to get involved in this relationship with the Taupo District Council.

In summary the opportunities of doing business with China are significant, the process of doing business with China should not be feared but embraced. The opportunities for Taupo businesses are there and not limited to business in the larger commercial centers of New Zealand. To assist Amy Adams will be facilitating further workshops in Taupo, watch this space.

Anyone interested in learning more should can contact Will Samuel at Taupo District Council, Fritz Frohlke at Enterprise Lake Taupo or Paul Stewart, Taupo Chamber of Commerce.