Good Advice from a Kiwi - Never trust the Chinese

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Never trust the Chinese: Ex-Fonterra head

By Sonya Bateson, Joseph Aldridge
10:10 AM Tuesday May 28, 2013


Auckland Airport chairman-in-waiting Henry van der Heyden warned exporters in a speech about doing business with the Chinese. Photo / Richard Robinson


Former Fonterra chairman Sir Henry van der Heyden has warned exporters to be wary of fraudulent behaviour when doing business in China, saying: "Don't ever trust them ... never."

Speaking at a business women's conference in Tauranga, van der Heyden said doing business in China was full of surprises."You've got to go and do business with your eyes wide open," he said.

Asked by an export manufacturer how small New Zealand businesses could ensure they were not ripped off when trading in China, Sir Henry said bad experiences should be used as opportunities to learn.

"That's my point about China. You will be full of surprises. Don't ever trust them ... never."

He later said the real intent of his comment was, "Be wary, be very careful."

Van der Heyden will head up the board of national gateway Auckland International Airport after the company's annual meeting in October. China is New Zealand's fastest growing tourism market and the airport is working hard with other tourism operators to attract more visitors from the country.

The airport company spent months courting China Southern Airlines to add Auckland to its international network. Current airport chair Joan Withers said she would comment later today, after speaking to van der Heyden.

Visitor arrivals from China through Auckland Airport were 37.2 per cent higher last month than April 2012. The 208,257 visitor arrivals for the 12 month period ending April 30 this year was a record for annual Chinese visitor arrivals at the airport.

Van der Heyden told conference delegates in Tauranga that Fonterra had learned the hard way after the Sanlu melamine scandal in 2008 and board members had discussed at length whether to continue producing milk in China.

"For us we made the decision, 'Look, we're here for the long run.' China is a very, very difficult market, and China's one of those places, I don't think you can sit on this side of the world and say this is how you're going to do business in China because you've actually got to be there, you've actually got to learn from your experiences as you evolve your business."

His comments come as Zespri is appealing against charges of criminal smuggling made against its Chinese subsidiary, saying it had been assured by Chinese officials the dual-invoicing method it was using was acceptable.

After the meeting, van der Heyden said he did not know enough of the details to comment on the Zespri court case but it reinforced his point.
NZ First leader Winston Peters said China's own Premier admitted the country's biggest problem was corruption and agreed that people should get to know the country before doing business there.

A spokesman for Foreign Affairs Minister Murray McCully said the minister had not seen van der Heyden's full remarks and was therefore unable to comment.

with nzherald.co.nz

By Sonya Bateson, Joseph Aldridge
- BAY OF PLENTY TIMES

Copyright ©2013, APN Holdings NZ Limited




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