The escalating US/China trade war could have serious implications for New Zealand.

The first potential problem is that it might stall global trade and tourism growth, which have been major contributors to New Zealand's strong economic performance in recent years.

Trade is particularly important because exports represent 26 per cent of our GDP, according to standardised OECD figures, compared with 20 per cent for China and only 12 per cent for the United States.


The second issue is that a major global trade war may require us to choose between the United States and China, a particularly difficult choice