By CGTN's Wang Tongxuan
Strengthening the diplomatic and trade links between New Zealand and China are high on the agenda during Premier Li Keqiang's visit to New Zealand this week as the two countries continue working on an upgrade of their 2008 Free Trade Agreement (FTA), said New Zealand Ambassador to China John McKinnon.
Chinese Premier Li Keqiang and his wife Cheng Hong wave as they arrive in Wellington on March 26, 2017. /Reuters Photo
Bilateral economic relations between China and New Zealand have grown steadily since the two countries established diplomatic ties in 1972.
Recent data from China's Ministry of Commerce shows that bilateral trade between China and New Zealand peaked in 2014 at 15 billion US dollars, almost quadrupling that of 2005.
China is now New Zealand's largest trading partner, export market, and source of imports. New Zealand exports dairy, wool and wood to China while importing clothes, mechanical and electrical products from China.
John McKinnon, New Zealand's ambassador to China / Xinhua Photo
New Zealand was one of the first developed countries to sign a Free Trade Agreement with China. To adapt to changes in two-way trade, both countries have agreed to begin new rounds of negotiations to upgrade the existing framework.
As China encourages overseas investment, an increasing number of Chinese firms have expanded their businesses in New Zealand. Their investment covers not only New Zealand's strong dairy and animal sectors but also finance and aviation. In a recent example, Chinese tech giant Huawei decided to invest 400 million New Zealand dollars (281 million US dollars) to build a cloud data center and innovation labs in the country.
In what would have been a blow to the now-scrapped US-backed TPP, several countries along the Pacific Rim are now looking to join hands with China in FTA.
Tourism New Zealand Photo
New Zealand and China are both parties of the China proposed Regional Comprehensive Economic Partnership (RCEP), an FTA between the 10 ASEAN nations and its six trading partners, which include Australia, India, Japan and South Korea.
In 2016, prospective RCEP member states accounted for a population of 3.4 billion with a total GDP of 21.4 trillion US dollars, approximately 30 percent of the world's total.
New Zealand Ambassador to China John McKinnon and CGTN’s Wang Tongxuan /CGTN Photo
McKinnon said New Zealand is keen to see a high quality agreement produced in a timely fashion. The ambassador added, "For New Zealand – an open economy, survive by trade – it's important to maintain the rules of international trading order as we benefit from that. New Zealand welcomes the comments China made on its commitment to international trade."
