PM Chris Hipkins to visit China as it hits back at NZ over economic coercion joint statement

Prime Minister Chris Hipkins will visit China at the end of the month on a diplomatic and trade mission. It comes as the Chinese embassy in New Zealand hit out at a joint declaration New Zealand signed against “economic coercion”.

Economic coercion is the practice of trying to influence countries by threatening to hit them with trade or economic sanctions if they do not comply. China is alleged to have used economic coercion against the likes of Lithuania and even Australia.

Hipkins said he would lead a “major trade delegation” to China, visiting Beijing, Tianjin, and Shanghai.

It will be the first visit of a prime minister to China since the pandemic. Prime Minister Jacinda Ardern last visited in 2019. It will be the first prime minister-led trade delegation to China since 2016, when one was led by Prime Minister John Key.

“The relationship with China is one of New Zealand’s most significant, wide-ranging, and complex. Our trade links, underpinned by our recently-upgraded free trade agreement have proved incredibly resilient in recent years,” Hipkins said.

Hipkins could not confirm whether he had secured a meeting with Chinese President Xi Xinping.

Exports to China increased to more than $21 billion in the year to last December - accounting for a quarter of New Zealand’s total exports.

Hipkins hinted the delegation would include not just New Zealand’s traditionally strong primary sector exporters like meat and wood, but new sectors too.

“It is also incredibly important we throw our support behind emerging sectors like gaming and health and wellness, and the make-up that I will be taking to China reflects that,” Hipkins said.

He said the delegation would include representatives from the tourism and education sectors, which are still behind pre-Covid levels.

Over the weekend, New Zealand signed a “Joint Declaration Against Trade-Related Economic Coercion and Non-Market Policies and Practices” in Paris with Australia, Canada, Japan, the UK and the US.

The Herald has previously obtained briefings that show New Zealand is working on policies to limit the impact of economic coercion on the economy, although these briefings never specify which country the efforts are directed at.

China’s embassy in Wellington hit out at the declaration, publishing a statement over the weekend appearing to suggest it was the US which was the most economically coercive country.

“In fact, it is plain enough who is conducting coercive, hegemonic, high-handed and bullying acts, economically or otherwise.

“The international community will not be easily deceived. Certain countries tend to overstretch or abuse the concept of national security to impose protectionist policies under various pretexts, which violate both the WTO rules and the commitments made jointly by all parties in an unabashed manner,” a spokesperson from the embassy said.

The spokesperson said it was “self-evident who is imposing ‘economic coercion’ on others” and implied the declaration was “blatant accusations against others ... simply to justify and glorify their own coercive acts and to pursue exceptionalism”.

Hipkins would not confirm whether New Zealand had ever faced economic coercion or the threat of it from China.

“We have a robust, ongoing dialogue with China, and we have always been very clear in our opposition to economic coercion. We believe in a rules-based system,” Hipkins said.

When asked whether China was the target of the declaration, Hipkins said it was directed at “any country” that used economic coercion.