NEW ZEALAND; CHINA; TRADE; POLITICS
27 JUNE 2023
New Zealand's Prime Minister Chris Hipkins has begun a week-long visit to China. The focus is very much on trade, but Hipkins will also have a political audience with President Xi Jinping - one of the most powerful and influential leaders in the world.
In this BALANCER, we look at the New Zealand-China relationship - from immigration to trade to politics - to see how this proverbial David & Goliath relationship works for both sides.
INTRODUCTION
One of the first and simplest indicators of the New Zealand-China relationship and its importance can be seen at Auckland International Airport.
Signs are written in the two official languages of New Zealand - English and Māori - and also in Mandarin, the most common dialect used in China.
It's recognition of the sheer amount of traffic - both visitors and migrants - who come from China and many other Asian countries.
But given (by almost every metric) New Zealand's minuscule size compared with China, how does this relationship work? And when a New Zealand prime minister meets the President of China, does China get anything out of it?
HIPKINS ISN'T THE ONLY WORLD LEADER IN TOWN
Before getting too carried away about New Zealand's moment in the Chinese spotlight, it's worth noting that there are FOUR world leaders visiting China this week:
- Luvsannamsrai Oyun-Erdene, Prime Minister of Mongolia
- Mia Amor Mottley, Prime Minister of Barbados
- Pham Minh Chinh, Prime Minister of Vietnam
- Chris Hipkins, Prime Minister of New Zealand
They're also in China to attend the 14th Annual Meeting of the New Champions in Tianjin - an event organised by the World Economic Forum, and known colloquially as the 'Summer Davos'.
1. IMMIGRATION
A GOLD RUSH, A WORLD WAR, AND AN EDUCATION
It was the lure of gold which first brought the Chinese to New Zealand in the last 1800s.
- 1866: 12 men from China arrived in Otago
- 1869: numbers reached upwards of 2,000 men
- 1881: 4,995 Chinese men settled, but only nine women (most wives remained in China)
Then during the mid 1900s, World War 2 created a second impetus - this time for refugees.
- 1939-1941: 256 Chinese women and 244 Chinese children arrived in New Zealand, to escape Japan's invasion of China
More recently, Asian immigration picked up with a large spike beginning in the 1990s:
Education and a cleaner environment proved to be a big pull for comparatively wealthier Chinese immigrants, as well as those wanting to leave Hong Kong before it was returned to China in 1997, after156 years of British rule.
- 2006: the number of China/Hong Kong migrants since the 1990s topped 85,000
- 40,000 came from Korea and Japan during the same period
FLYING DIRECT IN 2023: NEW ZEALAND TO CHINA
AS OF JUNE 2023, THERE ARE 27 FLIGHTS A WEEK BETWEEN AUCKLAND AND FOUR DESTINATIONS IN CHINA
*Fights to New Zealand from Chengdu with Sichuan Airlines have not yet resumed, post-pandemic
2. TRADE
CHINA IS NEW ZEALAND'S BIGGEST TRADING PARTNER
In the 2000s, it became clear that China was going to be a huge part of New Zealand's future.
After three years of negotiations, the two countries entered into a Free Trade Agreement in 2008 - the first time China had signed such a deal with any developed country.
Since then, exports to China have quadrupled according to the New Zealand Ministry of Foreign Affairs and Trade.
In the tourism sector, China is New Zealand’s "second largest and fastest growing tourism market" and its "largest source of international students".
TOP EXPORTS AND IMPORTS
Not surprisingly, New Zealand's biggest exports to China are in the food and agriculture sector.
Of the $21.64B worth of exports to China in the last financial year, 54.2% came from dairy, milk preparations, and meat, along with pasta and baking products.
Imports from China are more evenly distributed.
Household items like furniture and plastics feature in the top 5, but over a third of all imports (34.5%) are in the categories of electronic equipment and mechanical machinery.
3. POLITICS
DO TRADE AND BUSINESS ALWAYS TRUMP POLITICS?
For New Zealand, the short answer is probably 'yes'.
The relationship between the two countries is clearly beneficial for both, but it's New Zealand which needs it more. Exports to China represent a quarter of ALL New Zealand exports - so without China, there would be a massive hole in the local economy.
As such New Zealand's criticism of China has often been limited, but still controversial when it does come:
New Zealand draws back from calling Chinese abuses of Uyghurs genocide
The Guardian
4 MAY 2021
New Zealand MP breaks ranks with Ardern government to criticise China over human rights
The Guardian
6 JULY 2021
China hits out at NZ after Jacinda Ardern and Joe Biden's 'shared concerns' statement
The New Zealand Herald/news.com.au
2 JUNE 2022
In March 2023, New Zealand's foreign minister Nanaia Mahuta visited China, and met her Chinese counterpart Qin Gang.
It was part of a four day visit, but it was a subsequent statement released by Mahuta which raised the ire of China.
During her meeting with Foreign Minister Qin Gang, Mahuta said she "noted New Zealand’s deep concerns regarding the human rights situation in Xinjiang and the erosion of rights and freedoms in Hong Kong".
She also "expressed concerns over developments in the South China Sea and increasing tensions in the Taiwan Strait".
A few days prior to Prime Minister Chris Hipkins' visit to China, The Weekend Australian published an article claiming Mahuta had been given a "dressing-down" by Qin Gang, describing him as Beijing's "wolf warrior".
New Zealand media reprinted parts of the story, saying:
- Mahuta copped an "epic haranguing" by her counterpart Qin Gang, quoting sources familiar with the incident
- A source told The Australian: “She was harangued for a whole hour.”
However no proof or corroboration was provided, and the original article is paywalled.
MORE READING
The story of Aotearoa New Zealand’s first Chinese refugees
National Library of New Zealand
Te Ara Encyclopaedia of New Zealand
Ministry of Foreign Affairs & Trade
