Reaffirming economic ties with Beijing vital to New Zealand's growth: Analysts

The visit of New Zealand's Prime Minister Chris Hipkins to China is welcomed as a success with trade agreements and joint commitments to further cooperation in green energy and e-commerce, according to analysts.

Hipkins completed a successful tour of China from Sunday to Friday, where President Xi Jinping praised the "great importance" of China's relationship with its "friend and partner". The key focus of the visit was to reaffirm New Zealand's close economic and social relationship with China, which has been strong since formal diplomatic relations were established in 1972.

Several officials, including trade and tourism ministers, and some of New Zealand's top business leaders, joined Hipkins, who also met with Premier Li Qiang on Wednesday and other Chinese leaders.

During Hipkins' visit, seven trade agreements were signed to ease trade in areas such as kiwi fruit and cosmetics alongside the announcement that China Southern Airlines will increase capacity to New Zealand, adding 1,000 seats a month.

The airline said it would reinstate its route between Christchurch and the southern city of Guangzhou, Guangdong province, which was suspended during the COVID-19 pandemic in 2020, and add three additional flights to Auckland.

"China remains an important tourist market for New Zealand, with borders open, tourists returning to our shores, and the announcement by China Southern will make visiting from China even easier, and help drive our economic recovery," Hipkins said on Thursday.

Trade and Agriculture Minister Damien O'Connor, who accompanied Hipkins, said China was "an important market for our exporters, especially our primary industries, and reaffirming our significant economic relationship with China is vital to our economic growth and recovery".

Jason Young, associate professor of political science and international relations at the Victoria University of Wellington, said the positive high-level meeting between the two leaders benefits both China and New Zealand.

"I think the fact that New Zealand sent a trade delegation shows the value of the Chinese market for New Zealand businesses and New Zealand exporters and it was positive to see a good response from their visit to China," he said.

Young said agreements around agriculture, science and technology, and forestry cooperation "put in place mechanisms for further engagement, dialogue, discussion, joint research and interaction that will be positive for increasing cooperation in those areas in the coming years".

Speaking after meeting Hipkins, Xi called on both sides to continue to see each other as partners rather than opponents, as opportunities rather than threats, and consolidate the foundation for the development of bilateral relations.

"We discussed many aspects of our relationship, including our significant economic ties and also people-to-people, cultural connections and areas of direct bilateral cooperation such as trade, education, science and innovation, agriculture and tourism," Hipkins said.

Largest trading partner

China is New Zealand's largest trading partner by a significant margin. Executive Director of the New Zealand China Council Alistair Crozier said Hipkins' visit "delivered several important outcomes for the bilateral relationship".

Crozier said a key message of Hipkins and his trade delegation was that "New Zealand is 'open for business' and warmly welcomes Chinese students and tourists back to our country".

"The prime minister was keen to showcase emerging New Zealand export sectors such as game development and architectural services, in addition to the primary production sectors so well known to Chinese consumers," Crozier added.

Hipkins and his ministers also used the visit to explore new areas of government-to-government cooperation outside trade.

"Despite differences in scale and economic structure, both countries can support and learn from each other to address global issues," Crozier said.

Contact the writers at karlwilson@chinadailyapac.com.