Branch:Hibiscus Coast
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July

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June

At our last meeting, Thursday, Eric Dittmer gave us a very interesting account of his latest trip to China, 13 April 2008. The following is Eric’s report.

“This trip was to assist a friend of mine to recruit students to study English and Business Studies at his Victoria Institute of New Zealand, in Auckland. I had a long trip from NZ to Hong Kong, with a 3-hour layover there. I then caught the Dragon Air flight to Beijing followed by a one and a half hour drive to the hotel. By the time I got to bed, I had been on the go for 24 hours so I was pleased to hit the sack even though it was a rough 2-star hotel.

The next morning I had a slow and cold shower, a quick Chinese breakfast of what I am sure it was last night’s leftovers of cold cabbage, greasy onions, and some things that you didn’t want to ask what they were! I then spent 8 hours on a slow, hard-seated, and crowded train to Handan. There I met up with the guys who had been in Auckland 3 weeks before looking for a school for their children and also for a house so that one of the parents could live in and look after the children.

By this time, I had picked up a head cold and sore throat and felt really awful. I arrived late in the evening at the hotel, and the first seminar that night, with a dribbly runny nose and tickly throat and could not stop coughing During the next 2 days, we had about 6 seminars at schools and universities and met with the Vice Mayor of Handan. We spoke with him about Handan joining with Rodney District in a Sister City agreement, and we exchanged information on this subject. During my next visit I will progress these talks.

Everywhere we went the locals regarded us as a photo opportunity - I have never before had so many photos taken of me. In fact, I’m beginning to like it! We were also interviewed by CNN TV and both provincial and local newspapers - we made front page & 6 o’ clock news. They are also very interested in a Sister City in New Zealand and the people who had been to NZ expressed great interest in buying a house in Auckland.

At every lunch and dinner, we were received as guests and I managed to avoid most of the Maotai (Chinese rice wine) and kampai (the Chinese way of drinking and means ‘Bottoms Up’). I stuck to wine and beer and told them I was on antibiotics. Unfortunately, they didn’t believe me and tried to pour it down me, but I just told them straight – “no go”!

I think we did very well at the seminars and convinced quite a number to come to New Zealand but apparently the NZ Immigration Service in Beijing is not too helpful. We arranged a meeting with them to persuade them to be a bit more understanding. Four years ago more than 24,000 students came to New Zealand. Last year there were only 5,000. In my opinion, Helen and Winston are not helping the NZ educational economy at all.

Handan is an old city with lots of old, old buildings in poor condition and the pollution must be seen to be believed. It was bloody awful, in fact. It was hard to breathe and made your throat sore and full of phlegm. No wonder they cough and spit - I was doing it too! You cannot believe the new construction that is going on. Everywhere they are building factories, apartments and housing. We were driving to a seminar late one afternoon and I saw a few blocks of apartments being built. I began to count them - 30 blocks, 6-8 apartments to a floor and 25 storeys high, which amounts to about 4500 apartments. But wait for it… Another 10 kilometres down the road was another development of about 50 blocks, 25-30 storeys high!

When I arrived in Beijing, we landed at the old airport and the plane had to taxi to the new part. It took us more that 30 minutes to get there. Beijing airport is huge. But it is also very efficient and puts Auckland airport to shame. I didn’t get any photos but will get them next time. We went next to another small city for several seminars, and then on to Tianjin - the main port for Beijing and the mid North East. About 12 million people live there it is a big ugly old industrial city with pollution down to 15-20 meters above your head. And it rained the whole time we were there.

We received a great response from students and parents at the 5-6 seminars there. We intend to follow up these in the next few days. We also spoke at the Tianjin Normal University, which has just been built and is located outside of the city, about 1 hour away. It is a huge area with its own shops and infrastructure Its architecture is based on a old Roman theme with huge columns and Stonehenge-type structures everywhere. It can be measured in square kilometres, it would have been at least 5-10 kilometres in each direction. Nobody rode bikes; they used cars and buses because otherwise it would take too long to get around.

We then came to what for me was the most interesting part of the trip and somewhere I have always wanted to go. This was Mongolia [Editor’s note: Mongolia is independent from the PRC…] - a place that conjures up Mongolian horses being ridden at breakneck speed by wild-looking tribesmen rounding up sheep and cattle Unfortunately, it was not quite like that, as we only visited Inner Mongolia. However, it was still a very interesting place to go.

We left by train from Beijing on a 12-hour train trip. By now, we had got used to travelling by train so had a few of the necessities of life to take with us. We did find, though, that you can buy that awful Chinese Rice Wine on the train. We, however, had something better - some good New Zealand red wine. That kept our spirits up, as it was going to be colder up there (in Inner Mongolia) than in Beijing The train is divided up into ‘hard seats’ and ‘soft seats’. ‘Hard’ sleepers housed 6-8 people per unit, and ‘soft’ sleepers, 4 per unit. It was soft sleeper for us, so it was not a bad journey.

I woke at daylight (about 6 a.m.) to watch the countryside and villages go by. For me, as a former farmer, it was a real eye opener. They still plough and cultivate most of the land with a horse or mule, or, if they are lucky, a small garden-type tractor. The land we went through, and that was for more than 3 hours, was flat as far as the eye could see. It appeared to go on for ever, and was completely cultivated with rice and wheat. Around the Beijing area, the crops were about 300mm high and growing well. However, in Inner Mongolia, because it was so much further north, the spring would be about a month later.

This was a real eye-opener as so much of the work in the fields, such as making border dykes for the rice, was done by hand by a man with a shovel or a hoe. Sometimes you could see at a glance maybe 500 hectares, and there was this one man and his hoe working alone. It must be very demoralising to know that tomorrow, and lots of tomorrows, you will be out there doing that job

Baotou was a fairly modern city with very wide streets and almost no traffic. It was almost freezing when we arrived and we were taken for breakfast. This was actually the best breakfast on the trip - a big bowl of rice porridge covered with lumps of chocolate - a good way to warm up I had a very interesting morning at a private English Language school, and spent about 2 hours talking with the students and telling them about New Zealand as they know little about it. I had taken a New Zealand flag with me to give away somewhere and so told them that I would give it to the headmaster later that day.

As per usual, we went for a banquet dinner and the headmaster reminded me about 6 times “ don’t forget to give your flag ‘ and I did. So they will remember that visit. During the course of our journey, I was asked many times if could I help them find English teachers to come and help them learn English, so I am starting a project to send teachers and speakers of good English to China. And, yes, they did ask me to stay and teach!

The highlight of the trip was our invitation to a Mongolian Traditional Feast. When the feast started and all the entertainers came in playing their music and singing their national songs, and because I was the oldest, and therefore the guest of honour, I was presented with several silk scarves. These were similar to those the Tibetans used to give Sir Ed - it was quite an emotional moment for me. I was then escorted table by 2 ladies to the head of the table to carve the lamb, which had been brought in on a huge silver platter over a flaming gas fire. I was presented with a huge bowl (about 1 litre) of Maotai to be drunk, of course all in one go - no sips allowed! After that I was given a huge curved dagger to ceremonially carve the lamb - something I will remember for the rest of my life.

Then it was back to the feasting, singing and dancing, and, of course, many toasts from many happy and interesting people. After several more seminars, it was another 12-hour train journey back to Tianjin to meet with several agents and to speak to a group of parents about their children coming to study in NZ. One of the disturbing reports I heard, was that much of the negative news, especially related to crimes of rape, murder and the gang problems which happen in NZ, get back to China very quickly with obvious effects. In counterbalance, and this was something that struck me throughout my journey, was that parents would climb over broken glass to give their children the best education they could possibly afford.

Then it was back to Beijing airport and the flight back to Hong Kong for a short shopping stopover, then the overnight flight back to Auckland. This journey was very interesting and educational for me. The history of some 5000 years does take a bit to get your head around, and hopefully I can continue my journeys through China.

A few days after I arrived home our neighbour asked me if I could pay an account for her at an ANZ bank so I happened to be going past a bank at the far end of Dominion Road and so went in to pay this for her and a young Asian lady served me and a conversation started up to the effect that I had just returned from China. When I told her I had gone as far as Baotou in Mongolia, well, her eyes lit up with disbelief and she questioned me several times as whether I was telling the truth and then she told me that Baotou was her home town and she was so happy to have met someone that had been there. So now I have a new found friend!

Report on the NZ - China Friendship Society National Conference
Masterton, Friday 16- Sunday 18 May 2008, by Eric Dittmer.
Clarice and I drove to Masterton on the Friday to attend the conference attended the Executive Meeting at 3 pm with approximately 20 other representatives from branches around the country.

Eric Livingstone was acting President as Margaret Cooper was still too sick to travel

Items of interest
. It was decided to ‘bring’ Branch Presidents to conferences i.e. payment of their subscription out of National budget [There was some discussion as to how many should attend]
. Report on Chinese Language Foundation
. The Society Website is to be upgraded
. Life Membership was awarded to Mary Gray
. NZ Education Trust [no reports presented]
. Capitation fee: It was agreed that this be raised to $6-00 (but will not be due ‘til 2010
. Discussion on National Executive as to how many meetings per year and who should attend and what payments should be made
. Branch reports to be accepted but not read in full
. Distinguished Service Award was made to Don Simpson and Ken Blain
. Tour Report was made in committee [Eric Dittmer, John Meldrum, Tom Mills Trevor Linyard, to report back to next Executive Meeting re. policy for all tours [national & branch]
. Society gets 5% gross from Tours
. Charities Commission: We must apply as a Group Registration, i.e. Branches should not apply independently . 1 Minutes silence was held for the victims of the Sichuan earthquake
. An Appeal account is to be opened
. Suggestion that we hold regional meetings
. Projects to have more emphasis at conferences
. Followed by reports from Sally Russell
. Tour Committee Report. It was agreed that we proceed with the 2008 tour as planned with Tom & John to check out some hotels
. Doubt as to whether the agent will do 2009 tour, but, if not, Society will do
. Eric Dittmer has been asked to Guide the 2009 tour
. Eric was asked that if Hibiscus Coast Branch would put his name forward for the Prominent Persons Tour 2008
. Hibiscus Coast Branch donated $100 to the Sichuan Earthquake Appeal
. Madam Li Xiaolin to be the next President of the Chinese Peoples Friendship Associationn with Foreign Countries [Youxie]
. Leader of the Liaoning Delegation spoke to the conference as did guest from Changchun
. Ambassador Zhang Yuanyuan spoke regarding the ties between our 2 countries, and the earthquake
. George Andrews showed his video and spoke on the making of it [by Maori students’ visit to China] - an excellent project
. George Andrews to investigate the possibility of a Telethon for earthquake victims

It was a very good conference, but we have no qualms that Hibiscus Coast Branch will host an excellent conference in 2009

May

New Zealand: China Free Trade Agreement
On Thursday evening, 8th May, at the St John the Evangelist Catholic Church in Orewa the Hon. Shane Jones, the Associate Minister of Trade, gave an excellent talk on: The recently signed New Zealand: China Free Trade Agreement, and benefits to be expected from it to a large audience of members of the Hibiscus Coast branch of the New Zealand Chinese Friendship Society (NZCFS) and interested members of the public.

Also present were Mr. Conor Roberts, Labour Parliamentary Candidate for Rodney, as well as Mr. John Kerikeri, Deputy Mayor for Rodney. Many of the members of the public, including owners of businesses in the Rodney area, had attended to find out the possibilities and advantages of trade with China. Lady Rhyl Jansen, president of the NZCFS Branch, welcomed Mr Jones to the meeting and stated that, after the speech by Mr Jones, questions would be invited from the floor.

Mr. Jones began by saying that the NZ-China FTA is the biggest single event in diplomatic relations between the two countries in 35 years, and the biggest bilateral trade deal since New Zealand established CER [Closer Economic Relations] with Australia 25 years ago. He pointed out that “New Zealand is a trading nation whose standard of living, jobs and economic growth largely depend on its competitiveness in selling goods and services overseas. Therefore the NZ-China FTA is very important to New Zealand”. “The path to get to the conclusion of a Free Trade Agreement was complex and demanding.”

“On one side there was China, the world’s most populous nation of 1.3 billion people and on the other side you had New Zealand, a small South Pacific country of just 4 million people”. “In November 2004, New Zealand Prime Minister Helen Clark and the Chinese President Hu Jintao jointly announced that the two countries would begin negotiating an FTA. The first round of FTA negotiations was in December 2004, and the final (15th) round in Beijing in December 2007. This meant the NZ government, working in partnership with private sector stakeholders, consulting as much as possible for those interests and needs.

The Agreement was signed in Beijing on April 8th, 2008, and is yet to be ratified by the NZ Parliament. “China is vitally important to us as our fourth largest export market. On the surface we were of somewhat lesser importance to China as its 50th ranked export market. It is the fastest growing major economy in the world and is already our third largest trading partner. China’s middle class is now estimated to be more than 100 million people and growing – which will fuel the demand for New Zealand’s exports of goods and services. “Given the vast size differences between our two countries in all aspects, geography, population, economy etc, why was China interested in an agreement with New Zealand? “New Zealand has a very good relationship with China and for China, trust counts.

One of the key advantages we had was that we had established ourselves as a useful and well-regarded partner. That worked in our favour.” “New Zealand was the first developed country to agree to China becoming a member of the WTO. We also were the first to recognise that China has established a marketeconomy system. Added to this, in November 2004, New Zealand was the first developed (OECD) country to begin negotiating and also to conclude FTA negotiations with China”.

Mr Jones feels that this FTA will serve as a template in the future when other countries look to negotiate their own FTA with China.

He then outlined the benefits to both Chinese and New Zealand exporters for the yetto- be-ratified Free Trade Agreement being implemented by the governments of both countries, and he listed the outcomes of the FTA as follows:

What does the FTA mean for New Zealand?
• It will liberalise and facilitate the trade in goods, services and investment between China and New Zealand.
• It aims to improve the business environment by reducing barriers to trade and increasing cooperation between the two countries.
• It will open up new export opportunities through the removal over time of tariffs on 96 percent of New Zealand’s current exports to China.
• By the end of the tariff phase-out period (2019), tariffs on all but $80 million of current exports to China (worth $2 billion) will have been eliminated.
• The removal of restrictions around investment and the supply of services will deliver new opportunities for New Zealand businesses.
• Roughly 35 percent of New Zealand’s current exports to China valued at NZ$200 million will immediately become duty free.
• By the end of the FTA tariff phase-out period (1Jan 2019), tariffs on 96% of NZ exports will have been eliminated.

The following are some of the examples of this:
• If you are a wine exporter to China, you are currently facing a tariff rate of 14 percent. Under the FTA this tariff will reduce to zero by 2012. This will mean significant advantages to New Zealand wine exporters over their competitors still facing the tariff barrier.
• Kiwifruit exporters, at present, face a tariff of 20 percent to get their product into China. With the FTA this drops incrementally to be at zero by 2016.

He also went on to state some of the benefits for China: “Chinese exports to New Zealand are expected to increase by an annual average of between US$40 and US$70m between 2001 and 2027. For Chinese exporters, the FTA provides for elimination of all tariffs on China’s exports to NZ by 2016. This means that New Zealand current tariffs that are in the 6 - 12.5% range will be phased out by 2012. Products such as white-ware, steel, plastics and furniture are included. Some less sensitive textile and clothing products are also mentioned.

Editor’s Note:
Mr Jones provided to everybody a NZ Government booklet that gives a detailed explanation of the FTA, and many examples of practical advantages. This will be available in the Society’s Library. Members should contact Clarice Dittmer: 09- 428-7349. Mr Jones also indicated the government’s dedicated website (http://chinafta.govt.nz/index.php), also gives a wealth of information about the FTA.

Finally he urged exporters to take note that: “Now the challenge shifts from being predominantly one for government, to a challenge facing business. Governments don’t trade. Businesses do. “Businesses’ willingness, commitment, and ability to create a product or service for which there is a demand, and to market it effectively, will determine the extent to which New Zealand gains value from the FTA.

“The Government is committed to working with the private sector on this, both in New Zealand, and in market through our network of off-shore Embassies and Consulates. “A wide range of government agencies, led by the Ministry of Foreign Affairs and Trade (MFAT) and New Zealand Trade and Enterprise (NZTE), are working to ensure that businesses have access to a suite of information focusing on the potential benefits of the FTA and building market specific business capability so that on all fronts we hit the ground running.

“NZTE already has offices in Beijing, Shanghai and Guangzhou working with New Zealand businesses. It is planning to open up to five more offices in China over the next four years. This will enhance its ability to assist businesses wanting to operate beyond the main centres.

“NZTE will also be opening a New Zealand Concept Centre in Shanghai. The centre will be designed to help New Zealand businesses build connections, brand awareness and capability in China. In Shanghai we are also preparing for New Zealand’s presence at Expo in 2010, with a prime site four times larger than we had in Aichi, ready for the estimated 70 million visitors to the Shanghai Expo. This is a unique and important opportunity to showcase New Zealand. “New Zealand is also establishing a presence for the Food and Beverage sector at the annual Food and Hotel China trade shows which was very successful last year.”

M r Jones ended his speech with the belief that the NZ China FTA is a significant achievement for New Zealand and opens up many new opportunities for New Zealand.

Questions were then invited from the audience, as follows:

Several members of the audience expressed concern about imports from China suggesting that perhaps it would flood the market to the detriment of NZ-made goods. Others expressed concern over the prospect of Chinese workers taking jobs from NZ citizens.

However, Mr. Jones stated that: “Temporary Employment in NZ was one area which received a lot of media attention in the lead up to the announcement of the FTA. The outcome that has been achieved is actually a very good one for New Zealand. “The FTA provides for a maximum of 1,800 Chinese workers at any one time to come to New Zealand. Like all other foreign workers, applicants remain subject to skilllevel requirements and they must have a bona fide job offer which includes the requirement for their pay level to be the equivalent for any ordinary New Zealand worker in that field. “Specifically, the FTA allows for a maximum of 800 people in specified occupations with Chinese characteristics – traditional Chinese medicine practitioners, Chinese chefs, Mandarin teaching aides, Chinese “Wushu” martial arts coaches or Chinese tour guides. “The remaining 1000 places are restricted to 20 specified occupations that are included on NZ’s long term skills shortage list with no more than 100 in any single sector.

Mr. Jones underlined that these figures pale into insignificance when compared with the 100,000+ migrant workers who enter New Zealand each year for fruit picking, etc.. “Neither outcomes should result in the displacement of NZ workers and in fact, as defined by the skills shortage list, are in areas which New Zealand has been unable to fill from our current labour pool. In all cases, NZ minimum wage, working conditions and health and safety standards will apply.

“The FTA also provides for a new working holiday scheme with China which will allow for a maximum of 1,000 young skilled Chinese per year to enter New Zealand and engage in tourism and temporary employment. This is the same, capped level as is currently applied to workers from Chile, Argentina, Italy and the Czech Republic.

Another speaker from the audience mentioned the loss of students from China as a result of the refusal of NZ Universities, and tertiary & language schools, to take care of their finance requirements in the past. This slack has been taken up by Australia and Canada, but Mr Jones said that greater efforts were being made to encourage these students back to New Zealand. Indeed, a system of controls (which also covers places lodging Chinese students, where there have been serious problems in the past) has been put in place by the Ministry of Social Development.

“In the education sector China has made a binding commitment to include a selected number of NZ tertiary and NZQA accredited education providers on the China Ministry of Education “Study Abroad” website. “These provisions will directly assist NZ education service providers by giving them a high degree of certainty that they cannot arbitrarily be removed from the website with the result that Chinese students are deterred from using them”.

The meeting ended with members of the Society and visitors being able to discuss their concerns on a one-to-one basis with the Minister.

Membership News
The next committee meeting will be in the Pohutukawa Room, Whangaparaoa Library, at 2pm, May 22.

Programme
May 16 to May 18. National Conference, in Masterton. Eric and Clarice Dittmer will attend.
The programme for the rest of the year will be announced after the next committee meeting.

Forthcoming Events
2008 Jiang Hongguang Art Exhibition
Presented by: Pacific Culture and Arts 2008 (4th) New Zealand film Festival in China.Presented by: Pacific Culture and Arts Exchange Centre and China Film Bureau June – July 2008 Time: To be determined Ningbo of Zhejiang Province, Xian of Shan Xi Province and Beijing. Statues: Coming Up

2008 (7th) New Zealand Chinese Arts Exhibition
Presented by: Pacific Culture and Arts Exchange Centre and The-Edge 2 August – 24 August Opening Date & Time: 5:00-7:00pm on 2 August Open to Public: 3 August – 24 August Art Gallery, Aotea Centre Admission: Free Statues: Coming Up

2008 Young Chinese Artists Art Exhibition
Presented by: Pacific Culture and Arts Exchange Centre The-Edge Date: 1 November – 21 November Opening Date &Time: @ 5:00-7:00pm on 1 November Open to Public: 2 November – 21 November Art Gallery, Aotea Centre. Admission: Free Statues: Coming Up

2008 (2nd) “Songs from Home Town” Concert
Presented by: Pacific Culture and Arts Exchange Centre & The-Edge 29 November 2008 Time: 7:00pm ASB Theatre, Aotea Centre Admission: Tickets for Sale Statues: Coming Up

2008 (3rd) Korean film Festival in New Zealand
Presented by: New Zealand Korean Cinema Trust 1 December – 4 December (Tentative) Time: To be determined SKYCITY Rialto Cinemas (Tentative) Admission: Tickets for Sale Statues: Coming Up

2009 First Night Auckland Celebration
Presented by: The-Edge 31 December 2008 Time: 6:00pm on 31 December 2009 – 2:00am on 1 January 2010 Aotea Centre, Auckland City Admission: Free Statues: Coming Up

Rodney Times article on Chinese New Year.
Rodney Times article on our China National Day dinner, and Bill Willmott's excellent talk to our branch on his recent experiences on the Silk Road in Muslim China.