NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Fran O'Sullivan: New Zealand's tricky balancing act between two trading superpowers

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
9 Nov, 2018 04:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

United States President Donald Trump (left) and Chinese President Xi Jinping. Photo / AP

United States President Donald Trump (left) and Chinese President Xi Jinping. Photo / AP

COMMENT: Are New Zealanders "panda huggers" (diplomatic speak for those who enjoy good relations which China) or are we skilfully balancing our relations with both the US and China during a period of strategic competition by the great powers?

I'm in the camp that thinks the latter. And I would like to see it remain that way.

But if New Zealand is to credibly hold to this position, it may require our politicians to turn a slightly sharper lens on China when it comes to intellectual property infringements and behind-the-border barriers in much the same way as they now do to US protectionism.

In March I took part in a think tank-led symposium on United States-New Zealand relations.

The conference was co-hosted by the Wellington Centre for Strategic Studies and the Washington-based Centre for Strategic and International Studies (CSIS), with support from the US State Department.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

It was to cover bilateral relations, challenges to democracy and governance, regional security issues, trade and economics, and New Zealand, Australia and the South Pacific.

But the sub-theme was New Zealand and China.

Many of the US think tankers — some of whom had close links to the Trump Administration — clearly believed that New Zealand was too close to China.

Advertisement
Advertise with NZME.

There was little recognition — at least in the opening part of the conference — from US participants that the strategic partnership between New Zealand and the United States has been strengthened.

In the early 2000s, New Zealand and the United States began the decade-long process to rebuild a relationship which fractured over the 1980s ANZUS breakdown.

What was clear was that attitudes towards China had hardened in Washington.

Not simply in the political camp but also within business.

Discover more

Business

Sign trade deal ASAP to protect NZ's interests

19 Oct 04:00 PM
Business

Will Ardern's fondness for 'captain's calls' come back to bite her?

26 Oct 04:00 PM
Business

Fran O'Sullivan: There's still Miles of work ahead for Fonterra

30 Oct 04:00 PM
Business

English on a White House mission to show the power of data

02 Nov 04:00 PM

The resultant news coverage was hawkish.

The CSIS report — expected out in the next week or so — may surface some of those US attitudes.

But here is the balancing problem. New Zealand is a trading nation.

The US has never been that concerned about New Zealand's good diplomatic relations with China to offer this country a counter-balancing bilateral free trade deal.

At least not the kind it forged with Panama, Jordan and Colombia to keep those nations in its camp.

There's never been a US bilateral deal on offer like the ground-breaking agreement with China that we signed in 2008, although the TPP — which the US and NZ originally spearheaded — would have substituted.

Advertisement
Advertise with NZME.

But both Donald Trump and Hillary Clinton pulled away from it during the 2016 presidential election campaign.

Trade insiders joke that the US President's ego is such that renaming the CPTPP the Trump Pacific Agreement might just result in getting the US to join and result in a long-talked about Asia-Pacific deal.

Trump certainly flirted with the prospect but quickly pulled back.

What we do know is that under the Trump Administration there's been a tendency to talk up the bluster when it comes to trade.

But pragmatism does ultimately come into play as proven by the rescoped NAFTA deal which was not the one-way (America First) bet that the President earlier promised.

The US Midterm elections resulted in a predictable outcome. The Democrats now control Congress.

Advertisement
Advertise with NZME.

This gives them sufficient clout to stall the Trump agenda when it comes to major legislation including his policies on taxes, immigration, regulations, health care or trade.

If the US economic boom continues, that could be waited through.

But if it results in paralysis — or even worse, government shutdowns over the budget or debt-ceiling issues — there would be a rub off.

Trump and President Xi Jinping will meet again at the G20 summit but there is no sign that either side will reduce their punitive tariffs.

The US continues to see China as a strategic competitor and a direct threat to other liberal democracies.

It wants New Zealand to take a more forward-learning stance.

Advertisement
Advertise with NZME.

New Zealand wants the US to support multilateral institutions.

As a trade dependent nation this country simply wants free trade.

Save

    Share this article

Latest from Business

Premium
Shares

Market close: Geopolitical tensions keep NZ market flat, US Fed decision looms

18 Jun 06:09 AM
Premium
Business

Fringe Benefit Tax: Should you be paying it if your business owns a ute?

18 Jun 06:00 AM
New Zealand

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Market close: Geopolitical tensions keep NZ market flat, US Fed decision looms

Market close: Geopolitical tensions keep NZ market flat, US Fed decision looms

18 Jun 06:09 AM

The S&P/NZX 50 Index closed down 0.10%, falling to 12,627.32.

Premium
Fringe Benefit Tax: Should you be paying it if your business owns a ute?

Fringe Benefit Tax: Should you be paying it if your business owns a ute?

18 Jun 06:00 AM
'Life-changing': International flights return to Hamilton Airport

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM
Premium
Liam Dann: 'Brick wall' – why tomorrow’s GDP data won’t tell the real story

Liam Dann: 'Brick wall' – why tomorrow’s GDP data won’t tell the real story

18 Jun 05:17 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP