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Home / Business

Fran O’Sullivan: Chris Hipkins’ priorities in China: The economy, the economy - and the economy

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
30 Jun, 2023 05:00 PM5 mins to read

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Prime Minister Chris Hipkins talking to media in Beijing. Photo / RNZ

Prime Minister Chris Hipkins talking to media in Beijing. Photo / RNZ

Fran O'Sullivan
Opinion by Fran O'Sullivan
Head of Business, NZME
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OPINION

Chris Hipkins firmly put on the cloak of a political pragmatist as he prosecuted New Zealand’s economic interests in meetings with China’s top leadership in Beijing this week.

This was welcome — particularly to the 29-strong business delegation that accompanied the PM on his six-day mission.

The last thing New Zealand needs right now is a leader intent on putting political ideology and their own ego ahead of the national interest.

Right now, that interest is bedded in a clear need for the economy to get firmly back on a growth path.

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At multiple meetings in Beijing and Shanghai, Hipkins stressed that New Zealand was “open for business” and valued its longstanding relationship with China.

This does not mean the Prime Minister ignored New Zealand’s values, as suggested by foreign commentators intent on painting this country as a “Five Eyes recalcitrant” — simply that New Zealand puts its interests first.

Longstanding New Zealand concerns relating to human rights — Xinjiang, Hong Kong — along with China’s expansion into the Pacific, were also registered in his meeting with Premier Li Qiang. But these had been staked out weeks ago in a robust exchange at Foreign Minister level in preparation for the successive meetings with President Xi Jinping and Premier Li at the Great Hall of the People.

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Both Hipkins and the Premier were later said to be “clear in their views”. On both sides, the critical focus was economic.

China is not immune to the major stresses affecting the global economy.

This was apparent in Premier Li’s address to “Summer Davos” — a World Economic Forum meeting in Tianjin — where he talked up the Chinese economy and criticised “the West” for calls on “de-risking” but noted that “China’s economic rebound has been in an apparent positive direction since the beginning of this year.”

Talk among New Zealand businesses operating in China was that the post-Covid rebound has been slower than predicted. As one local business leader noted to me, “China is a big machine; it takes time to get it warmed up and get the wheels turning, but once it moves there is great momentum”.

Xi and Li were warm in their comments — the Premier in particular praising Hipkins as a “young and capable statesman”. And according to the Global Times, New Zealand “presents an example of how Western countries can withstand the pressures of unilateralism, Cold War mentality and hegemony, as well as preserve their strategic autonomy to develop ties with China and benefit their people”.

This praise is a double-edged sword, in that some commentators will inevitably use it to paint Hipkins as a lap dog.

The Prime Minister will be keen to utilise some clear air following the visit to stake out New Zealand’s overall foreign policy stance before he heads to Lithuania late next week for the Nato summit, so there is no room for misperception.

He is also expected to swing by Brussels to sign the free trade agreement New Zealand has secured with the European Union after the European Council gave approval this week. Bilateral trade is expected to grow by up to 30 per cent due to the FTA, with annual European Union exports to New Zealand potentially growing by up to €4.5 billion ($8b).

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Hipkins and Chinese Premier Xi Jinping shake hands in the Great Hall of the People in Beijing last week. Photo / Supplied, Nathan McKinnon
Hipkins and Chinese Premier Xi Jinping shake hands in the Great Hall of the People in Beijing last week. Photo / Supplied, Nathan McKinnon

On his arrival back in New Zealand, he will meet powerful trade ministers from some of the Asia-Pacific region’s most influential nations.

Those ministers will be in Auckland for the meeting of the CPTPP Commission (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) that China also wants to join.

On that score — and contrary to some absurd politicking by foreign commentators — it is clear that while New Zealand welcomes China’s CPTPP bid, the joint statements issued after the Beijing meetings note aspirants have to meet “high standards”.

Hipkins will make a major address to the China Business Summit and two days later will join the Australia New Zealand Leadership Forum meeting in Wellington, where he will speak on that relationship over dinner.

The China visit has shown Hipkins to be firmly in the “realist” school when it comes to promoting New Zealand offshore — as with former prime ministers Helen Clark and Sir John Key.

Clark’s political leadership was instrumental in New Zealand forging its ground-breaking free trade deal with China in 2008. It was her pragmatism that led her to accord China “market economy” status well ahead of other nations — including Australia, which chaffed at her move.

Key’s political leadership came to the fore when leveraging the FTA that the Clark Government secured. He led multiple missions to China and his own leadership was marked by the way he managed to retain Beijing’s confidence in New Zealand after the melamine disaster, which could have permanently harmed Fonterra’s footing in China, and a later false botulism scare.

But the emphasis will soon turn domestic.

After this week’s fracas over Cabinet Minister Kiri Allan — on top of the previous loss of three ministers from his administration — Hipkins must be wondering what’s next.

Former Cabinet Minister Meka Whaitiri defected to Te Pati Māori, while Hipkins was in the UK for King Charles’ coronation.

It remains a disgrace that a Minister who was Cyclone Recovery Minister for Hawke’s Bay jumped ship and abandoned her leadership responsibilities to try to shore up her own political future.

The Prime Minister has shown strong focus and discipline in his overseas dealings — it is now time his ministers did the same.

- Fran O’Sullivan was a member of the business delegation accompanying the Prime Minister to China.

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