Is New Zealand moving away from its traditional pro-China policy?
- Jacinda Ardern’s talk of differences becoming ‘harder to reconcile’ fuelled speculation Wellington may rethink approach to its largest trade partner
- But New Zealand is not taking sides in the US-China struggle – instead it is differentiating between countries and issues, such as Xinjiang and human rights
The Kiwis, as New Zealanders are often referred to, are proud of their independent approach towards relations with Beijing that has been defined by six “firsts”.
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Differences with China ‘becoming harder to reconcile’, says New Zealand prime minister
She also struck a concerned note when she said: “And it will not have escaped the attention of anyone here that as China’s role in the world grows and the differences between our systems – and the interests and values that shape those systems – are becoming harder to reconcile.”
This portion of Ardern’s speech was what drove speculation that the leader was spotlighting the possibility of irreconcilable relations with China going forward.
But one must assess the rest of her speech before coming to any conclusion. For even as Ardern highlighted the differences in bilateral ties with China, she continued by saying that disagreements “need not derail our relationship, it is simply a reality”.
New Zealand to stay true to values even amid growing differences with China
This conclusion suggests continuity in New Zealand’s approach to relations with China and offers a more optimistic outlook for the bilateral relationship, where much is at stake.
China has been New Zealand’s largest trading partner with two-way trade standing at NZ$31.52 billion (US$22.66 billion) in 2020, up from NZ$1.9 billion (US$1.1 billion) in 1997. Last year, the country’s exports to China totalled NZ$18.63 billion and its imports were worth NZ$12.89 billion.
On January 26 this year, both sides signed an agreement to upgrade their free-trade agreement. Through this new agreement, New Zealand has gained greater access to the Chinese market, eliminating or reducing tariffs on New Zealand exports such as dairy, timber, and seafood as well as compliance costs.
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China and New Zealand sign upgraded free-trade deal, eliminating nearly all trade tariffs
On the whole, Ardern’s speech reflects how countries have to position themselves as they navigate an increasingly bipolar world.
But now the major powers have become increasingly competitive or confrontational, other countries find less space to be completely independent.
Professor Bo Zhiyue is founder and president of the Bo Zhiyue China Institute, a consulting firm providing services to government leaders and CEOs of multinational corporations