China keen to buy N.Z. farm machinery

Press, 19 July 1979, Page 11

China keen to buy N.Z. farm machinery

PA Wellington Provincial centres such as Palmerston North, with strong agricultural-linked manufacturing industries, could benefit significantly from New Zealand’s efforts to double trade with China in the next two years, according to the general manager of the New Zealand ExportImport Corporation, Mr C. B. Stanworth.

Speaking to final-year marketing students at Massey University about the corporation and trade with China, he said one area of potential expansion was in agricultural machinery, a wide range of which was manufactured by Palmerston North companies. “We know the Chinese are interested in this — particularly milking equipment, ploughing machinery and posthole diggers,” Mr Stanworth said.

“We have already had contact with the relevant State trading organisations about it. Artificial insemination of animals, herd testing and general farming and forestry technology are also required. Provincial centres in New Zealand have lots of expertise in these fields.” Mr Stanworth was a

member of the Govern-ment-organised New Zealand trade delegation to China in May, led by the Deputy Prime Minister (Mr Taiboys).

On its return, the delegation recommended that New Zealand aim at doubling its trade with China to SI6OM in the next two years. Mr Stanworth told the students that trading with China presented selling problems which probably were not covered in any university syllabus. “For instance, the Chinese still place much emphasis on friendship before trade and 1 have never seen any of that kind of philosophy spelled out in textbooks. “One goes through quite formal meetings with Chinese trade representatives when the topic is not business but friendship. They express their feelings on the subject and you express yours. “That formality concluded, trade talks commence and this is where the Chinese show how knowledgeable they are about the products they are discussing, what hard bargainers they are, but how scrupulously honest and fair they are in all their dealings.”

Mr Stanworth said it had taken the ExportImport Corporation four years of visiting China before it secured its first two-year contract for large-scale supply of steel reinforcing bar and wire rod. Its own total trade with China last financial year was SB.3M, mostly in steel products and semiprocessed hides and skins. Like any other nation, China placed emphasis on two-way trade, and if New Zealand hoped to achieve maximum exports it would have to import more from China, especially machine tools, compressors, engines, chemicals, textile products and minerals, Mr Stanworth said.