New Zealand Business strategy: Managing geoeconomics vulnerability

During the British colonial era Auckland was an entrepot for trade between Polynesia and the rest of the world. As the Empire folded in 1950s, New Zealand trade relationship was forged mainly outside Polynesia specifically, with East Asian tigers and ASEAN. China became the largest trading and investing partner. The change presented huge vulnerability in terms of geoeconomics.

Rising China was identified by American led West as the biggest challenger. When the Chinese juggernaut rolled its economic wheels it quickly became a geoeconomics enemy. The struggle between the so called “rule based international system”, espoused by US & partners and the authoritarian and centralized system followed by China & Russia became so intense that many countries including New Zealand got unwittingly into the crosshairs of the West.

At this point a via media business strategy that takes into count of the national interest of countries like New Zealand has to be found. Interestingly enough New Zealand looked back into her past and found that she needs a new brand not as a distant outpost of the Western capitalism, but as modern equitable partner in international trade and investment.

From recent announcements that are sounded by influential politicians and administrators in New Zealand the trend towards independent stand in multi-lateral affairs appears to have sunk in. The following are key verticals of the new business strategy:

1. Moving away from the concept of “China or Rest” that smacks the favourite war slogan by George Bush “Are you with us or against us“, New Zealand favours a compromising stand of “China and Others”. Where she can chart a neutral yet mutually beneficial path in global relation.

2. As a side benefit from the above, New Zealand intends to lessen supply chain or export channel dependence on a single country. Of course, China would remain as the largest trading partner for decades to come. None the less, diversification as a tool would be pursued rigorously

3. New Zealand also wish to regain her commanding position of an intermediary in international trade between Polynesian Islands such as Samoa, Cook, Tonga & Niue with the outside world  

4. As a Samaritan, New Zealand has funnelled development assistance to Polynesia in addition to functioning as facilitator of goods & capital flow to and fro Polynesia. She has track experience dealing with the islands and islanders quite a number of whom are enjoying citizenship rights in New Zealand. This can be leveraged with China whose BRI program could be suitably amended to bring overall prosperity to Polynesia.   

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist