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June 2022 Issue: Zoom into China with us: Webinars and Wisdom Galore!

Zoom into China with us: Webinars and Wisdom Galore!

Welcome to the NZCTA Young Associates Newsletter: a monthly-ish digest of happenings and articles for young people interested in the NZ-China space.

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June has been a busy month for us all, with many things wrapping up and coming to a close - but it has also seen many new exciting prospects begin to appear! This June, the YA hosted a Zoom into China webinar which proved incredibly insightful, and we also saw a shift in Covid restrictions in China that may well pave the way for greater investor activity. Finally, a recent survey by the Asia New Zealand Foundation was published that showcased perceptions of Asia in New Zealand - a great read while you’re stuck inside on these seemingly increasingly rainy days. We hope you’re keeping safe and dry with plenty of reading and visual material this June!

#1. China's recovery from zero-Covid restrictions may push equities into bull-market territory for the first time since early 2019.

 

As we head towards what might look like post-pandemic life, a new report has been released that explores what helped keep our economy afloat over the last two years: our trade with China.

The zero-Covid policy has been regarded by many as the greatest obstacle for investors. China's economy and enterprises have remained dedicated to anti-Covid measures that lack an endgame while other parts of the world try to coexist with the virus.

Chinese stocks have regained investors' favour after Shanghai removed a two-month lockdown on June 1st. On June 28th, the government reduced the quarantine period for travellers entering the country to just 10 days.

According to Morgan Stanley, Beijing's move to cut the length of quarantine in half for inbound travelers could suggest that China intends to gradually do away with its zero-tolerance approach to managing the virus. DBS Group also noted that the shift may restore confidence that easing will diminish the risk of a major blockade in the form of lockdowns, which has happened in more than 40 cities so far this year, including Shanghai, and that economic growth would continue to be a top priority.

Nonetheless, expert opinion remains divided. Some investors believe that the pandemic needs to be curbed to mitigate quarantine; otherwise, the possibility of re-introducing tighter controls could persist.

There is some belief in the market that China will resume regarding economic development as its primary objective. In fact, the CSI 300 rose 1%, with the index entering the bull market for the first time since early 2019, while the Hong Kong Hang Seng also increased 0.9% after restrictions were eased.

#2. Summary: New Zealanders’ Perceptions of Asia and Asian Peoples

 

As New Zealand migrates from its historic, predominantly bicultural makeup into a melting pot of multiculturalism, more and more Kiwis are gaining a sense of connection to Asia and acknowledging the importance of equipping themselves for a world increasingly linked to the region.

In the latest survey on New Zealanders’ Perceptions of Asia and Asian Peoples by the Asia New Zealand Foundation | Te Whītau Tūhono, Kiwis—more than ever—believe that it’s important for New Zealand to develop political, social and economic ties with Asia - a view that has increased by 8% compared to the year before. While knowledge of the wider Asia region is growing, the Foundation’s findings reveal that China continues to be top of mind as the country is a key trading partner for New Zealand, following closely behind Australia.

Despite recent discourse around China developing strongholds in the Pacific, New Zealanders still admit the significance of readying their country’s future workforce to be one that is Asia-savvy. What might this look like, you ask? Well, multitudes of Kiwis acquiring the ability to speak key Asian languages such as Mandarin, and, similarly, striving to understand relevant social and professional norms and customs.

To mark the 25 years since this survey began in 1997, the views of young New Zealanders aged 16 to 19 were given a special spotlight. Overwhelmingly, 67% of this age group are interested in learning an Asian language, while just 24% feel Asian-related topics are taught to a reasonable level.

ANZF’s Executive Director, Simon Draper, says the survey highlights an eagerness amongst New Zealanders to learn more, but it remains unclear whether Kiwis have yet to fully grasp the wealth of opportunities that Asia presents for Aotearoa.

#3. Intergenerational Changes, Intergenerational Chances! Our latest event!

The YA was excited to hold another Zoom into China webinar in the month of June, featuring Jerry Clode, founder at The Solution. Jerry is recognised as a leading expert on China's consumer and digital culture and offered some incredible insights for our attendees.

Jerry spoke on the one-child policy, its impacts as such a long-standing piece of legislation and its supposed end. In particular, our guest speaker explained the policy’s effects across different generations at a country-wide scale. Looking into different generations - or decades, as they're mostly commonly categorised in China - we dove into the revolutionary context and its subsequent explosive economic growth, as well as how brands have taken all this into consideration as the wants and needs of successive generations evolve against the backdrop of political change.

Jerry went onto cover what he labelled  “Generational Gulfs”, helping our audience to grasp the generational shift from old to new cohorts in China, including the stark differences in their upbringings and lifestyles.

We compared our parents’ generations, how they made decisions relating to brands and products in the context of the one-child policy, and how this compares to the Chinese equivalent of Gen Z. Something particularly interesting was how Gen Z is increasingly becoming a generation of global citizens, a trend worth taking into consideration as the Chinese government lessons restrictions on how many children each family may have.

Our webinar explored an incredible range of topics and how they tie into different generations: China’s social credit system, smart devices, recycling, as well as looking at how culture has changed immensely over the years, and how businesses and policies (such as the one-child policy) have played into it.

Watch the recording of this event here! Come and see what the generational equivalent in China to much of the YA’s audience looks like!

Have a piece you’d like us to feature or share? Or an idea/opportunity you would like us to offer? Do you have general questions/comments? Let us know through our socials below!If you’re reading this as a forwarded email, hello! Subscribe here.

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Editors: David,  Melanie, Kate and Ava

Disclaimer: Opinions expressed in this newsletter are the sole opinion of the NZCTA Young Associates and do not represent the opinions of the wider New Zealand China Trade Association or any of its executive committee.

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