New Zealand’s leader says that although his country has “sizable economic interests” in China, it also sees “high-value markets” through free trade agreements (FTA) with the United Kingdom, European Union, and an Asia–Pacific trade group.
In his speech, Mr. Hipkins said that China is a significant trading partner for New Zealand, contributing more than $40 billion to New Zealand’s economy, with dairy, meat, and forestry as the top three exports.
Mr. Hipkins said that although China is an “attractive market,” the finalization of FTAs with the UK, EU, and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offer exporters “more favorable terms of trade than before in a wide range of other, equally significant and high-value markets.”
“The seven new or upgraded FTAs we’ve signed since 2017 has seen goods covered by a tariff-free FTA rise from 52 percent of exports to almost three-quarters,” he said.
His remarks came a day after the British government officially joined the CPTPP—an Asia–Pacific trade bloc that includes New Zealand and 10 other nations—during a meeting in New Zealand.
Pacific Region Becoming ‘Less Secure’
Mr. Hipkins stated that as China’s economic influence has grown, the Chinese Communist Party (CCP) has also become “more assertive” in its foreign policy.“In its own words, China has ’stood up' and is now asserting its interests globally,” he said. “It’s normal for states to pursue their interests and to use all the tools at their disposal to exert influence regionally and internationally.”
Mr. Hipkins said that China’s rise and how it seeks to exert its influence is a major driver of the increasing strategic competition, particularly in the Indo–Pacific, which has become “more contested” and “less secure.”
New Zealand will continue to require a “careful” approach in its relationship with China because of the complex global environment, he added.
“In engaging with China’s leadership, I made the point that in this relationship, we will continue to talk candidly but respectfully about issues on which we differ,” Mr. Hipkins said.
“And as I have noted, face-to-face engagement is a critical part of New Zealand’s diplomacy. In this complex global environment, dialogue and engagement are more important than ever.
“The conversations are not always easy, but they are essential.”
“The economic relationship ... was, by far, the biggest topic that we discussed, but we also discussed a broad range of international issues, including international relationships,” Mr. Hipkins told reporters.
“As a small state, we have to be very careful in our foreign policy,“ she said on New Zealand’s The AM Show. ”That’s just the nature of being a small state—we can’t defend ourselves militarily.”
