Trade with Chinese flourishing

Press, 5 July 1978, Page 11

Trade with Chinese flourishing

NZPA Peking. New Zealand’s trade with China is developing rapidly and exports may top the SNZ4SM mark in value this year. The bulk of the trade comes from sales of wool, tallow, hides and skins wood pulp, newsprint, and Kraft paper. Trade officials believe Chinese purchases of these commodities will show a marked increase this year. During the last week. New Zealand businessmen have succeeded in selling more than SNZ2M worth of hides, skins, tallow, and wood pulp to Chinese corporations. The market is buoyant in these commodities because of a tightening supply situation in the global pulp trade and a Chinese ban on Australian hides and skins. The ban was imposed as a result of an outbreak of blue tongue disease in Australian cattle. New Zealand’s tallow sales to China in the 197677 June year were worth SNZII.2M. In the current June year the value is likely to be about SNZI3.SM. Wool returns are expected to increase by about SNZ7OO.OOO to about

s’nzB3M, while pulp sales are likely to far exceed SNZB.3M, while pulp sales 1976-77. The long strike at the Kawerau Mill of Tasman Pulp and Paper has hindered further sales of newsprint this year but industry sources expect that China will again turn to New Zealand salesmen later in the year. Kraft paper is another main item on the list of New Zealand’s exports to China and this, too, is expected to show value gains in this trading year. Government officials say that special • offorts were made to develop a market for reinforcing steel in China and sales this year will be worth about SNZ3.9M. There are expected to be deliveries of live sheep from' New Zealand later in the year -and officials say Chinese buying corporations are interested in the purchase of New Zealand opossum skins. Officials continue to search out prospects for further dairy sales. — 2100 tonnes of unsalted butter were sold last December for use in the confectionery trade — but so far no “concrete” response has come from buyers. About eight months ago

a sales presentation covering Fletcher topdressing aircraft was given in China but this has not yet resulted in purchasing orders. The New Zealand Government has invited a Chinese buying mission to New Zealand to examine prospects of purchasing agricultural machinery. The mission is likely to tour New Zealand late this year. In the 1977 calendar year, New Zealand Jfnported some SNZ2IM worth of products from China. This figure was SNZ4M higher than that for the 1976-77 June trading year. . Cotton fabrics, tea, cashews and walnuts, fine animal hair, pigs’ bristles, paraffin wax, rosin, textile yarn and thread, tea towels, linen, and glassware were major import items. Chinese officials say they would like to see an expansion of their exports to New Zealand, particularly in the field of textiles, cotton fabrics, cherncial products, machine and hand tools, and medical instruments. New Zealand representatives here say they believe the prospects are good for increased trade “both ways.”