Chinese Premier Li Qiang Li arrives in New Zealand today accompanied by senior Ministers in a signal China wants to further cement wide-ranging political and business ties. Photo / AP
Fran O’Sullivan is a member of the China Council and recently co-hosted the 10th China Business Summit in Auckland. Her company, NZ INC. Limited launched the summit in partnership with the Auckland Business Chamber.
OPINION
Premier Li Qiang’s visit to New Zealand will spark business confidence in the bilateral relationship.
Li’s “business-friendly” reputation precedes him. A former Chinese Communist Party secretary in Shanghai — like President Xi Jinping earlier in his own career — he is part of the president’s inner circle.
At the World Economic Forum at Davos in January, he said the Chinese economy was open for business and highlighted its potential for foreign investment as its vast population becomes rapidly more urban and its middle class continues to grow.
Li arrives in New Zealand today accompanied by senior ministers in a signal China wants to further cement wide-ranging political and business ties.
“The Premier’s visit is a valuable opportunity for exchanges on areas of co-operation between New Zealand and China,” Prime Minister Christopher Luxon says.
“China is New Zealand’s largest trading partner, with two-way trade worth almost $38 billion last year. From innovative agri-tech and high-quality food, to creative industries, and world-class tourism and education, New Zealand has a lot to offer China.
“I am confident that trade with China will continue to grow, supporting the Government’s goal to double exports by value in the next decade.”
Premier Li’s visit marks 10 years since the conclusion of the New Zealand-China Comprehensive Strategic Partnership.
It is expected the official talks will result in agreement to forge a new chapter for the partnership.
Trade Minister Todd McClay has indicated the free trade agreement between New Zealand and China is expected to be further upgraded to make gains on services trade.
China is seeking a more streamlined foreign investment regime and a more speedy timeline for visa approvals.
Today, there will be a ceremonial welcome in Wellington followed by bilateral talks with the Prime Minister and an official dinner this evening.
Engagements in Wellington and Auckland will focus on important areas of co-operation including innovative business, agri-tech, education, and people-to-people connections.
The Chinese Ambassador has signalled his country’s opposition to New Zealand joining Pillar 2 of the Aukus Partnership, which it regards as a military alliance to contain China. “We happen to think Aukus is good from a security perspective,” says Luxon who said the Government is still in the exploratory phase.
While today’s talks will be constructive, the Prime Minister has signalled he will continue to speak openly on areas of disagreement.
“New Zealand and China engage where we have shared interests, and we speak frankly and constructively with each other where we have differences. Our relationship is significant, complex, and resilient.
“The challenging global outlook makes it vital we are sharing perspectives and engaging China on key issues that matter to New Zealand.”
This is the first time New Zealand has been visited by a senior Chinese leader since Premier Li Keqiang came here in 2017.
There will be multiple opportunities for business leaders with significant interests in China to touch base with the Chinese leadership. The Chinese Embassy tasked the Auckland Business Chamber with bringing together 20 business leaders for a Business Roundtable with the Premier.
“The roundtable will be a real opportunity to both talk about those traditional sectors that have done well in China for some time and also those from less traditional creative sectors such as Sir Richard Taylor’s Weta Workshops,” says Auckland Business Chamber chief executive Simon Bridges.
“Business with China doesn’t stand still. Whether you are selling dairy, kiwifruit, tourism, toys or healthcare technology we all need to keep innovating and improving because China is also continuing to become ever more commercially competitive.
“I think Premier Li will see we are doing all that from the conversation at the roundtable. Additionally, there will be a chance for the Premier to talk to us as business leaders”.
The format is six business leaders will speak. The Premier will address them and they will have another hour’s more general dialogue.
The speakers include: Air New Zealand chief executive Greg Foran, Fonterra chief executive Miles Hurrell, Weta Workshop founder and chief executive Sir Richard Taylor, New Zealand China Trade Association chairman John Cochrane, who is also managing director of Facteon Group, Ngai Tahu chairman Justin Tipa and Bridges. Others who will be at the meeting include Meat Industry Association chief executive Sirma Karapeeva and representatives from Les Mills, Zespri and Fisher & Paykel Healthcare.
Says Bridges: “He has a reputation as pro-business and innovation, and I think there is the prospect of us all learning more, not just about what we are selling into China but what China is doing and can offer to New Zealand.”
Chinese electric vehicle manufacturer Build Your Dreams (BYD) will also be represented at the roundtable, one of a number of companies Bridges says “can help us on our evolving electrification journey”.
Several of the business leaders are also members of the New Zealand China Council, which will meet separately with the Premier that day. The council is chaired by former New Zealand Ambassador to China John McKinnon.
New Zealand has scope to increase the value of exports to Asia by being innovative and enhancing our trade reputation, business leaders say.
Foreign Minister Winston Peters and Trade Minister Todd McClay are also expected to visit China this year — McLay for a second time. He is likely to go to Shanghai in November for the China International Import Expo (CIIE), which is traditionally attended by leaders from many New Zealand exporters to China.
Luxon says he expects to meet President Xi Jinping on the margins of the Apec Leaders Meeting in Peru this November.
He also hopes to make an official visit to China next year and will go to India before the end of this year.
The Chinese Premier will fly to Australia at the conclusion of his New Zealand visits.
He will be meeting representatives from critical trade industries — including energy, mining and green tech — at a June 18 round-table gathering in Perth, which will be attended by a significant Chinese business delegation.
Luxon is Tokyo-bound for a political and business visit.
He will travel to Japan from June 16-20, his first visit as PM.
“Japan is incredibly important to New Zealand’s prosperity. It is the world’s fourth-largest economy, and our fourth-largest export destination,” he said.
“As you know, growing the economy is my number one priority.
“A strong economy means we can invest in more of the areas that New Zealanders need, such as health, education, and law and order.
“Our trade relationship is a key plank to economic success.
“We are a small, geographically isolated country that relies on exporting our goods to the world.
“If we are to maximise our economic growth, we will need to continue to strengthen international relationships to meet our ambitious target of doubling the value of our exports in the next 10 years.”
Luxon says he is excited to be accompanied by a senior business delegation, who share his ambition for this country and will work closely with him to showcase the very best New Zealand has to offer.
“As well as being known for our high-quality products and services, we will be promoting New Zealand as an attractive destination for Japanese investors, tourists and students.”
He says in an increasingly contested world, Japan is a natural strategic partner for New Zealand.
“I’m looking forward to meeting Prime Minister Kishida Fumio and sharing perspectives on global and regional issues, as well as agreeing some concrete ways New Zealand and Japan can step up our co-operation in relation to defence and security.”
While in Japan, Luxon will celebrate strong rugby connections and space co-operation alongside hosting business and innovation events.
The Prime Minister will be accompanied by his wife Amanda and Minister for Trade Todd McClay.
2017: Prime Minister Bill English welcomed Premier Li Keqiang for a four-day visit in March 2017. China was by then New Zealand’s second-largest trading partner. Two-way trade reached a new all-time high of $23 billion in 2016.
2014: Prime Minister John Key welcomed President Xi Jinping, along with a large delegation, on a State visit in November 2014. It was the first visit by a Chinese head of state since President Hu in 2003, although Xi himself visited in 2010 when he was vice-president. Bilateral trade between the two countries had reached $20b, ahead of its targeted goal. A new goal of reaching $30b bilateral trade by 2020 was set.
2006: Prime Minister Helen Clark welcomed Premier Wen Jiabao in July, 2006. They agreed to step up negotiations on a bilateral free trade agreement.
2003: Prime Minister Helen Clark welcomed President Hu Jintao for a three-day visit. China was then New Zealand’s fourth-largest trade partner, with total trade of over $4b and our fourth-largest export market.
Dairy export revenue has lifted 16% to a record $27 billion.