Australian executives including Treasury Wine Estates CEO Tim Ford heading to China in 2023
Local bosses including Treasury Wine Estates’ Tim Ford are making plans to head to China next year with political ties easing and its Covid-19 restrictions ending.
Australian chief executives are making plans to head to China in 2023, with political ties easing and China’s Covid restrictions ending.
Business leaders were closely watching the outcome of Wednesday’s meeting between Foreign Minister Penny Wong and her Chinese counterpart, Wang Yi, which is expected to pave the way for an easier business relationship.
Treasury Wine Estates chief executive, Tim Ford, said on Wednesday he was “looking forward” to “reconnecting” with the company’s staff and business partners next year after not being able to travel to China for the past three years.
Mr Ford last travelled to China at the end of 2019. Its major brand, Penfolds, is headquartered in Shanghai.
“It’s pleasing to see renewed engagement between Australia and China with Senator Wong’s meeting with Chinese Foreign Minister Wang Yi in Beijing,” Mr Ford told The Australian.
“We welcome any move that strengthens economic and cultural ties between the two nations.
“Personally, I’m looking forward to travelling to China again in 2023 and reconnecting with our staff, customers and partners face-to-face.”
“While it’s too early to tell whether there will be a change in tariffs for Australian wine in the short term, the dialogue is encouraging, and we strongly support further diplomatic and business engagement.”
“We appreciate that our Chinese consumers still have appetite for Penfolds and other wines in our portfolio, and we remain committed to the Chinese market for the long term. “
TWE’s exports from Australia were hit by the imposition of tariffs by China in November 2020 but the company has responded by sending Penfolds wines made in France and California to China.
It has also recently released a Chinese made version of Penfolds as part of its strategy to encourage the local wine industry in China.
Mr Ford’s comments come as the Business Council of Australia and the Australia China Business Council are planning a business delegation to China in early 2023 and executives from Australian companies with operations in China are looking at China visits.
The BCA/ ACBC delegation is expected to wait until after the annual political meetings in Beijing in March.
The chairman of the BCA’s international engagement and security committee Warwick Smith told the Australian earlier this week that the trip would occur “at the appropriate time”, when China was “able to be entered with all parties agreeing”.
Prominent BCA members in line to join the delegation include Wesfarmers boss Rob Scott, BlueScope chief executive Mark Vassella, Rio Tinto’s Jakob Stausholm, Qantas CEO Alan Joyce, and BHP’s Mike Henry.
ANZ chief Shayne Elliott, the CBA’s Matt Comyn, King & Wood Mallesons global CEO Sue Kench, KPMG national chair Alison Kitchen, and the heads of a number of top Australian universities are also likely to join the delegation.
But senior executives of other Australian companies with operations in China are also considering making visits to their operations in the country after three years of closed borders.
The president of the Australia China Business Council, David Olsson, told the Australian that there had been “ renewed interest”: from China’s trade promotion body, CCPIT, for Australian business roundtables and delegations to China.
Mr Olsson said the ACBC would begin taking business delegations to China “as soon as travel conditions allow.”
“For most businesses, it’s been nearly three years since they were last able to visit China.
“There is a huge demand and need for Australian companies to visit their distributors and manufacturing sites, to reconnect with customers and to develop an informed assessment of the market opportunities.
“Chinese companies are also keen to reconnect. Australian goods and services continue to be in demand.”
Mr Olsson said there would be a small high level delegation of chief executives organised jointly by the ACBC, the Business Council of Australia and Austrade.
“Its focus will be to renew government and business relationships at a very senior level,” he said.
The second would be more business-focused.
“ACBC is working with Austrade to take delegations to visit green industrial parks and innovation centres in major cities such as Shenzhen and Shanghai, with opportunities for briefings in Hong Kong and Beijing,” he said.
“These visits will take place as soon as parties agree and conditions allow, but we are planning for late March onwards.”
“It is not just up to our respective governments – it is also up to us in the private sector, industry, universities, and multilateral institutions to all play their part,” he said.
More Coverage
Chalmers the stock picker makes a bad call
The Future Fund has thrived by having the independence to make its own financial calls. The Treasurer wants to trash this with his own risky bets.
PwC scandal broadens as international partner named
A former PwC Australia partner has named an American heavyweight within the firm allegedly linked to its tax leaks, potentially broadening the scandal to its international offices.