Teknatool International provides NZ manufacturers and companies with easy access to quality component and OEM China manufacturers.

THE CHINA NEW ZEALAND FREE TRADE AGREEMENT (NZ China FTA)

The fact that China has pushed New Zealand to the forefront of its international trade relationships by scheduling New Zealand to become the first country in the OECD to form a Free Trade Agreement (FTA). This offers NZ a substantial strategic coupe in a world that is witnessing increased global competition, while the major trading circles in Europe and the US have made it clear that NZ is to remain part of South East Asia.

The New Zealand and China Free Trade Agreement (NZ China FTA) was signed in Beijing on the 7th of April 2008 and has been in force since 1 October 2008. This agreement allows for mutually beneficial trade of goods and services between the two countries.

Many tariffs on components and products being imported from China are being phased out over the next four years. This opens a vast array of opportunities for New Zealand businesses to strategically align themselves, whether it's gaining access to cheaper component suppliers, outsourcing product manufacturing, or exporting to the huge Chinese markets. Kiwi businesses stand to strategically gain from the NZ China FTA through access to the cost advantages as provided by China.

China is New Zealand's third largest source of imports and this includes a wide range of manufactured products where New Zealand tariffs are typically in the 5% to 7% percent range, such as furniture, steel and plastics. Under the NZ China free trade agreement (China FTA) these will be completely phased out over the next 4 years. Teknatool International provides NZ manufacturers with ease of access to quality component and OEM China manufacturers.

For more info visit the official NZ China FTA Government Website >>

CHINA STRATEGY

The reasons for considering manufacturing in China generally hinge on gaining access to reduced manufacturing costs to remain competitive in today's global marketplace. By leveraging Chinese manufacturing cost efficiencies NZ companies can gain access to economies of scale that would other wise be unavailable due to high domestic labour costs and limited access to capital equipment.

Reasons to consider manufacturing in China:

• Access to low cost manufacturing.

• Manufacturing efficiencies and gaining economies of scale.

• Incentives offered by Chinese government agencies.

• Access to China's rapidly growing domestic market.

• Brings production closer to Asian, US and European markets.

• Proximity to third party suppliers for makers of intermediate goods.

• Concentrate on core competencies in product development and marketing.

• Access to capital.

• The entrepreneurial spirit of the Chinese and Chinese managers.

• Access to increasingly competitive and sophisticated Chinese research, science and technology.

However, huge setup investment cost and fear of running a company in an unfamiliar country stop many Kiwi companies from taking this opportunity. Now, Teknatool International is able to help New Zealand businesses with their China strategy by providing a trustworthy product sourcing solution:

• Sourcing a continuous supply of low cost, high quality components.

• Complete product production outsourced to specialist OEM manufacturers in China.

• Use Teknatool's well-established current manufacturing facility.