Trade and Agriculture Minister Todd McClay is rejecting negativity about China and said next week’s trip to Beijing will be useful for New Zealand traders.
His comments contrast with a wave of gloomy economic analysis that has swept China in the past two years, driven by deficiencies such as its debt-ridden property and government sectors.
“Obviously there’s a slowdown and retraction … but look, they still have 4.5% economic growth this year and next year,” McClay said.
“For many countries in the world, that is something they would like.”
McClay said China remains vital for NZ, taking 22% of goods and services exports in 2023.
“Growing our trade relationships and exports will boost New Zealand’s economy, and it is only through a strong economy we can lift incomes, reduce the cost of living and afford the public services Kiwis deserve.”
The NZ-China Free Trade Agreement (FTA) came into effect in 2008, since when exports have quadrupled. It was refined in 2022 to cover subsequent developments such as e-commerce and government procurement rules.
McClay said there is still further work to do on economic relations between the two countries, despite those developments.
“An FTA is nothing more than a framework of rules that people can rely upon and within it, they actually have to sell [their goods to customers].”
And there will be an additional benefit of the trip – a move to free up trade in services, which will put into effect policies actually decided on already by the two governments.
McClay’s trip will take him to Beijing, where he will meet the Minister of Commerce, Wang Wentao, the Minister of Agriculture and Rural Affairs Tang Renjian, and forestry administrator Guan Zhi’ou.
He will also go to Shanghai to meet with NZ businesses there covering food and beverage, health and nutrition, services and logistics.
He will visit Harbin in Heilongjiang province, a significant agricultural base in China.
His trip will largely coincide with a journey to Singapore, Thailand and the Philippines by Prime Minister Christopher Luxon.
Luxon will be accompanied by the Minister of Climate Change and Revenue, Simon Watts and NZ’s first MP of Filipino origin, Paulo Garcia.
