Another article in the AFR: GB commenting (which he rarely does) on Australia-China relationship needing mutual respect and need to find a way forward. Our ex-CEO also commenting (reinforcing GB's sentiments ... thankfully)
Babidge, Hrdlicka urge 'respect' and 'thought' on China Carrie LaFrenz Senior reporterSep 9, 2020 –
The a2 Milk Company chief executive Geoff Babidge says the souring of Australia-China relations is regrettable, and his predecessor Jayne Hrdlicka – a former Jetstar Airways CEO – says the situation highlights the "importance of respect" in bilateral relationships.The a2 Milk boss Geoff Babidge called the escalating tensions with China "regrettable." Mr Babidge cautioned that more thought needed to go into what governments and business leaders said publicly.Ms Hrdlicka is expected to become a non-executive director of Virgin Australia when the administrators' sale to Bain Capital is completed. A2 Milk is heavily reliant on doing business in China. It has 77 staff in China, all of whom are local Chinese. China-based channels account for 48 per cent of a2 Milk's total infant nutrition sales, which reached $NZ1.42 billion ($1.3 billion), up nearly 34 per cent, in fiscal 2020.Mr Babidge sought to distance the New Zealand-based company from Australia, although he acknowledged Australia's importance as a large customer across the Tasman. "We are a New Zealand company. Founded in New Zealand and dual-listed in Australia with an important business in Australia," he told The Australian Financial Review."But ... with respect to Australia, clearly the political tensions are regrettable. We need a different approach. There is a high degree of sensitivity on what is said publicly. That does not in any way mean the federal government can't have its own set of values that are important, but so does China."We all need to be conscious of what we say and how we say it publicly. I'm sure I'm not alone in the business community saying that something needs to change. We need to find some formula that creates a breakthrough so both China and Australia can move forward."RELATED'Do not travel to China': Payne warns of arbitrary detention. His comments came as the US State Department and British Foreign Office blasted China for restricting their country's media, and after two Australian journalists working in the country were forced to leave.The latest news follows Australia's call earlier in the year for an independent inquiry into the handling of the coronavirus pandemic, which escalated tensions with China.Mr Babidge said good long-term relationships with key partners in China State Farm Holding Shanghai Co, established in 2012, were also helpful."We have got good long-term business partners in China. We very much value those relationships. They were established for mutual benefit. Most importantly, there is mutual respect," he said.Ms Hrdlicka said the situation was a reminder that relationships were "terribly important.""You have to respect the culture and the environment, and behave in a way that is consistent with that," the former chief executive of Jetstar Airways told the Financial Review.Jayne Hrdlicka says recent events highlight the importance of respect. "I don't think it will cause businesses to think any differently about the opportunities, but it highlights importance of respect. It's a reminder to everyone to respect different [views] and understand the environment you are working in – wherever that might be."She agreed that having a strong Chinese partner equated to having a "safety net" while working in China."My experience at Jetstar was having local partners is everything," she said. "It did not matter if it was China, Japan, Vietnam or Singapore. You need to have strong local partners to help you understand how to work effectively in the local culture, the legal system and local regulatory framework."Mr Babidge added he was not in any position to comment on the specifics of China's treatment of journalists, but noted that political tensions appeared to be escalating."We need to find a basis where we can successfully co-exist, both commercially and from a relationship perspective," he said.He said the New Zealand government appeared to be communicating differently with Beijing, compared with Australia. Mr Babidge would not be drawn on whether that difference was due to having a female Prime Minister, Jacinda Ardern."I'm not going to go anywhere near that," he said.More to come
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Another article in the AFR: GB commenting (which he rarely does)...
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