New Zealand’s leader said that while his country has “sizable economic interests” in China, it also sees “high-value markets” through free trade agreements (FTAs) with the United Kingdom, European Union, and an Asia-Pacific trade group.
Prime Minister Chris Hipkins made the remarks at the China Business Summit in Auckland on July 17, in which he reaffirmed his commitment to advancing trade opportunities for exporters amid a complex global landscape.
In his speech, Mr. Hipkins said that China is a significant trading partner for New Zealand, contributing over $40 billion to New Zealand’s economy, with dairy, meat, and forestry as the top three exports.
Mr. Hipkins said that while China is an “attractive market,” the finalization of FTAs with the UK, EU, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offer exporters “more favorable terms of trade than before in a wide range of other, equally significant and high-value markets.”
“The seven new or upgraded FTAs we’ve signed since 2017 has seen goods covered by a tariff-free FTA rise from 52 percent of exports to almost three quarters,” he added.
His remarks came a day after the British government officially joined the CPTPP—an Asia-Pacific trade bloc that includes New Zealand and 10 other nations—during a meeting in New Zealand.
The trade bloc covers more than 500 million people and 15 percent of the world’s economy. For Britain, it represents the largest trade deal it has struck since leaving the EU more than three years ago. Britain had also signed separate trade deals with Australia and New Zealand.
The United States is not part of the bloc after former President Donald Trump withdrew from its predecessor, the Trans-Pacific Partnership. China has applied to join the bloc.
Pacific Region Becoming ‘Less Secure’
Mr. Hipkins stated that as China’s economic influence has grown, the Chinese Communist Party (CCP) has also become “more assertive” in its foreign policy.
“In its own words, China has ‘stood up’ and is now asserting its interests globally,” he said. “It’s normal for states to pursue their interests and to use all the tools at their disposal to exert influence regionally and internationally.”
Mr. Hipkins said that China’s rise and how it seeks to exert its influence is a major driver of the increasing strategic competition, particularly in the Indo-Pacific, which has now become “more contested” and “less secure.”
New Zealand will continue to require a “careful” approach in its relationship with China due to the complex global environment, he added.
“In engaging with China’s leadership, I made the point that in this relationship, we will continue to talk candidly, but respectfully, about issues on which we differ,” Mr. Hipkins said.
“And as I have noted, face-to-face engagement is a critical part of New Zealand’s diplomacy. In this complex global environment, dialogue and engagement are more important than ever,” he added.
“The conversations are not always easy, but they are essential.”
New Zealand’s economy relies heavily on its biggest trading partner, China, and the government has usually strayed from taking a strong stance against the CCP. Mr. Hipkins has said that relations with China are “the most complex” and will require “continued engagement.”
Last month, Mr. Hipkins held talks with CCP leader Xi Jinping in Beijing to reaffirm the countries’ close economic relationship. Mr. Xi said China had always regarded New Zealand as “a friend and a partner.”
“The economic relationship … was, by far, the biggest topic that we discussed, but we also discussed a broad range of international issues, including international relationships,” Mr. Hipkins told reporters.
Professor Anne-Marie Brady, a China expert and critic, believed that New Zealand leaders were more careful when criticizing the CCP than other Western nations because of its weak military power.
“As a small state, we have to be very careful in our foreign policy; that’s just the nature of being a small state—we can’t defend ourselves militarily,” she told the AM show.
Rebecca Zhu and The Associated Press contributed to this report.
