Their hour-long discussion was opportunity-focused with an implicit emphasis from the China side that New Zealand should not “put the economic benefits from two-way trade at risk”.
This compared to Prime Minister Christopher Luxon’s own private meeting which had a strong focus on the Government’s concerns over issues like China’s presence in the South China Sea, Taiwan and human rights as well as new developments like the decision to add a services protocol to the bilateral free trade agreement. This will be a negative list model – something which China is pursuing with just a few countries - and will provide broader space for services providers to expand cooperation in emerging fields on top of the existing goods, tourism and education trade.
Underlying Li’s comments was the suggestion that New Zealand firms had nothing to fear by staying focused on China as a significant part of their businesses’ portfolios.
“I want to stress and emphasise that China’s door is opening up, and it will always be open to New Zealand companies,” he said. Interestingly, he linked market access to investment. “We must expand market access and shorten the negative list for foreign investment,” he said.
“Old friends from the business community, you can play up your influence and become the bridge for communication and dialogue between our two countries to help different sectors in New Zealand see China in a more objective way,” Li said.
Li’s messaging at the hour-long meeting at the Cordis hotel was both implicit and explicit. He earlier highlighted New Zealand’s relative dependency on trade with China in direct questions to CEOs such as Fonterra’s Miles Hurrell, but skilfully put it in the context of an enduring trade relationship also being integral to the Government achieving its goal to double exports by value within a decade.
“Understanding helps get rid of differences and negative feelings towards each other … We are each other’s important opportunity instead of being a threat or challenge.”
There was more besides as he drew on China’s 5000-year history. He noted China was for a long time the strongest power in the world but had never colonised any other country. It was not seeking hegemony (implying others aka the United States were).
But going forward, “we really need to hold on to the right perception of each other”.
And that is the rub given the obvious fact that New Zealand is being increasingly drawn into the rapidly evolving “Western” security nexus where major powers are now talking openly about placing additional sanctions on China over its relationship with Russia.
The Premier’s call came during a meeting organised by the Auckland Business Chamber in Auckland during Li’s official visit which continued into last Saturday with agritech presentations at Fonterra before he departed to Australia.
On the guest list were: Auckland Business Chamber CEO Simon Bridges, John Cochrane (Faceton Intelligent Technology), Justin Tipa (Te Runanga o Ngai Tahu), Miles Hurrell (Fonterra), Sir Richard Taylor (Weta Workshop), Greg Foran (Air New Zealand), Brett O’Riley – the outgoing CEO of the Employers & Manufacturers Association, Stefan Korn (Callaghan Innovation), Dan Boulton (Silver Fern Farms), Gigi Crawford (Zealong Tea Estate), Nathan Flowerday (Zespri Group), Sirma Karapeeva (Meat Industry Association), Michael Wilding (Zuru Group), Gary Hooper (Aquaculture NZ), Anthony Wadge (ATECO Group NZ-BYD Auto NZ), Andrew Clark (Ports of Auckland), Phillip Mills (Les Mills) and Chiong Yong (New Zealand King Salmon).
The Premier is more personally engaging than his predecessor the late Li Keqiang who was a highly-educated economist who won the Sun Yefang Prize, China’s highest prize in economics, in 1996. Li Keqiang was intent on China’s economic liberalisation but his relationship with President Xi Jinping is said to have been less cordial that that of the current premier.
Li Qiang is frequently counted in with the “New Zhijiang Army” – a faction associated with Xi who was Communist Party secretary of Zhejiang Province earlier in his career.
He is also closer to Xi than his predecessor and has been charged with getting business moving again after the lengthy Covid lockdowns including in Shanghai where he was based before being appointed Premier.
Six CEOs gave mini-presentations during the session. They were each introduced by China’s Commerce Minister Wang Wentao.
The Premier engaged with each speaker, asking Hurrell for instance what percentage of Fonterra’s sales went to China and noting he had enjoyed their products when he was based in Shanghai.
Te Rūnanga o Ngāi Tahu chair Justin Tipa forecast the iwi’s tourism business would host 90,000 Chinese visitors this year.
He also talked up seafood exports - particularly lobsters. This earned a rejoinder from Li who said if the company could get 1% of the Chinese population to eat one lobster a year then they could export 14 million lobsters to China annually.
He was also across the role Air New Zealand played in keeping supply chains between New Zealand and China open during the pandemic.
In all a polished and engaged meeting - but the messages (implicit and explicit) were unmistakable.
Disclosure: Fran O’Sullivan was one of three journalists invited to observe the forum. The Herald’s Liam Dann and Politik’s Richard Harman also attended. Fran O’Sullivan is also a member of the China Council. these are her personal views.
