$30m Expo cash for long term says trade boss

The Government is hoping business will be able to leverage off the $30 million it has invested in the New Zealand Pavilion at the Shanghai World Expo.

But Philip Gibson, the man in charge of the expo effort, sees the gains as mainly long-term and strategic.

"It's not necessarily something that's going to pay off over the next 12 months. It's about consciousness-raising, and that is a big job in a country as large as China," he said.

"It is also branding, showing we are clean and green and beautiful, but also smart and innovative and a good place to do business."

Trade Minster Tim Groser has already led a trade mission, focused on the seafood industry, to Shanghai since expo opened on May 1.

Another five ministerial trade missions are planned for the six months expo runs, including one to be led by Prime Minister John Key in July. They will include aviation, education, Maori business and ICT (information, communication and technology). There will also be regional delegations.

Tucked away inside the New Zealand pavilion is a hospitality suite, but New Zealand Trade and Enterprise also have a permanent facility in Shanghai called New Zealand Central.

Opened last year it has meeting rooms and hospitality facilities, including a roof garden with barbecue, and office facilities businesses can use, as well as housing NZT&E's own Shanghai presence.

Trade commissioner Jeff Shepherd said the expo environment did not necessarily lend itself to doing business.

"It's huge and people want to look around our pavilion and others, but if they want to sit down and do some business after that experience we are saying come back here - eat some of our food, drink some of our wine and maybe use these facilities to talk business."

The real opportunities to leverage off expo are for the companies which are already doing business there, he believes.

"We are not suggesting to companies that are not in the market to come to expo and use it as the basis for building their business in China."

China was not an "opportunistic" market, Shepherd said. "It is a market which rewards perseverance and commitment and time. You have got to have a long-term view."

To succeed in China companies needed the ability and commitment to establish a physical presence there.

"A lot of our companies are small so it is a real challenge in terms of the time and investment required. Another challenge is the ability to scale up quickly to respond to the market," Shepherd said.

"Having people in the company back in New Zealand who understand China or are excited about it is very important, as is having the right people on the ground here, and making them feel they are part of the company."

EXPO VISITORS

* Trade Minister Tim Groser has already led a trade mission to Shanghai since expo opened on May 1.
* Another five ministerial trade missions are planned, including one to be led by Prime Minister John Key.
* Trade missions include aviation, education, Maori business and ICT.

Brian Fallow visited Shanghai and the expo as a guest of Air New Zealand.