China

Our relationship with China

New Zealand and China have a long relationship going back to the 1840s.

The first Chinese immigrant to New Zealand is thought to have been Appo Hocton, who arrived in Nelson in 1842. The first large scale arrival of Chinese to New Zealand occurred in the 1860s, initially for gold-mining. Official contact began in 1912 with trade, missionary, immigration and other links. New Zealand and China established formal diplomatic relations in December 1972, and the relationship has developed rapidly since then. Today tens of thousands of students and tourists travel each way every year, and meetings between political leaders and heads of state take place regularly.

The New Zealand–China Free Trade Agreement (FTA) signed in 2008 provided much impetus to the trading relationship. China is now New Zealand’s largest trading partner in goods and second largest overall including trade in services. Since 2007, two way trade has increased from NZ$10 billion to NZ$30 billion. China is one of the world’s fastest-growing economies and its vast population and growing middle class represent huge potential.China is New Zealand’s largest trading partner in goods and second largest overall including trade in services. The New Zealand–China Free Trade Agreement (FTA) signed in 2008 was China's first FTA with a developed country. China is one of the world’s fastest-growing economies and its vast population and growing middle class represent huge potential.

More on New Zealand’s relationship with China

This Infographic [PDF, 2.5 MB] was produced in 2017 to commemorate 45 years of diplomatic relations between New Zealand and China.

Read about first steps towards diplomatic ties between New Zealand and China.

Read about our new Embassy in Beijing.

Education and tourism

Education and tourism links have been growing strongly over the past decade. From early beginnings when both countries offered an exchange programme for three students each, China is now our largest source of foreign students - there were over 40,000 Chinese student enrolments in New Zealand in 2017.

Tourism between our two countries has also increased rapidly. Our first diplomats had to walk into China after flying to Hong Kong because China had no international air links. In high season, there are now over 80 direct flights between New Zealand and China (including Hong Kong) every week. China is the second, and most rapidly-growing, source of tourists to New Zealand (behind Australia), with around 450,000 visitors in 2018. New Zealand and China agreed to designate 2019 as the Year of Tourism between the two countries.

Trade

2018 statistics

We have a strong and growing trade relationship with China. The NZ-China FTA was initially projected to increase our exports by between $225-$350 million each year. However this was rapidly exceeded, with exports increasing by $1 billion in the first year, and growth continuing.

New Zealand–China FTA

The New Zealand-China FTA was New Zealand’s biggest trade deal since the Closer Economic Relations agreement with Australia in the 1980s. It cements the trading relationship between our two countries, and frees up business for exporters, the service sector and investors. By 2016, New Zealand had duty free access on over 97% of China’s tariff lines, with core dairy products transitioning to full free trade in 2024 for milk powders, and two years earlier for butter, cheese and liquid milk and cream.

Notice for New Zealand companies: US Commerce Department Entities List: Chinese Listings

New Zealand companies trading with China should be aware that beginning in October 2019 the United States’ Department of Commerce began adding Chinese entities to its Entities List under the US Export Administration Regulations. The Department of Commerce asserts that these entities have been implicated in human rights violations in Xinjiang, China. The Entities List is one element of the US regulations pertaining to exports, including the export of items from third countries (like New Zealand) that contain a US item. While the US Export Administration Regulations are domestic US law, they may nevertheless have implications for New Zealand companies if the Department of Commerce takes particular action pursuant to those regulations. For example, the Department of Commerce could add a New Zealand company to the Entity List if it believes the company has exported goods contrary to US restrictions. It is recommended that any New Zealand company doing business in Xinjiang or with any listed entity review relevant information carefully (www.commerce.gov/tags/entity-list) and, if necessary, seek independent legal advice.

China's cybersecurity law

China’s Cybersecurity Law came into effect on 1 June 2017. It aims to protect China's national security – the definition of which extends to maintaining territorial integrity, social and economic stability, and the public order.

It regulates how organisations and businesses should protect digital information:

• including whether and under what circumstances it can be transferred out of mainland China
• introduces measures aimed to safeguard internet systems, products and services against cyber-attacks.

This is an evolving area of law that applies to companies differently, depending on their nature and the area they operate in. We recommend that you:

• consider the updates to Chinese cybersecurity law and how they will relate to your business
• review your policies on information technology, information security management and personally identifiable information
• check whether your VPN provider in China is a “licensed” provider
• consider whether you might need to seek specialised legal and/or technical advice.

Understanding China's cybersecurity law — information for New Zealand businesses [PDF, 763 KB]

Trade in services

While education and tourism are the biggest service exports, as above, New Zealand also increasingly exports ‘knowledge economy’ services such as design, information technology, film and TV, and food safety. New Zealand’s overall services exports to China increased to NZ$3.4 billion in 2018.

Investment

Investment from China including Hong Kong into New Zealand reached NZ$10.6 billion in 2018. After Australia, China is New Zealand’s second largest source country for foreign direct investment, representing almost 10% of our total FDI stock. Chinese investment extends across a range of sectors including primary industries and forestry (30%), infrastructure and commercial development (20%), and manufacturing (15%). Chinese investors are the largest foreign investors in primary products exports, waste management, electrical whiteware, and tourism infrastructure. New Zealand’s limited overseas direct investment in China is mainly concentrated in the dairy sector.

Free trade agreements with China

We have a free trade agreement with China and a regional free trade agreement that includes China:

• NZ-China free trade agreement
• Regional Comprehensive Economic Partnership (RCEP)

Environment and Climate change

New Zealand and China signed an Environmental Cooperation Agreement (ECA) in 2008. There are three priorities under the ECA: water quality in rural areas; chemicals management and contaminated sites; and invasive species and biodiversity. New Zealand and China have worked together in all of these areas for over ten years.

The New Zealand-China Climate Change Action Plan 2017 gives practical effect to the New Zealand-China Climate Change Cooperation Arrangement signed in 2014. The Action Plan enables Chinese and New Zealand carbon markets experts to share technical information and expertise on carbon markets and emission trading schemes, as well as agricultural greenhouse gas mitigation.

New Zealand and China are co-leaders of the ‘Nature-Based Solutions’ pillar of the United Nations Secretary General’s Climate Summit 2019(external link) The purpose of the Summit is to initiate activities that will have a significant impact on emissions ahead of the 2020 recommunication of countries’ nationally determined contributions. The Nature-Based Solutions pillar seeks to reduce greenhouse gas emissions within and across forestry, agriculture, oceans and food systems, including through biodiversity conservation, leveraging supply chains, and technology.

• New Zealand – China Environmental Cooperation Agreement (ECA)  [PDF, 206 KB]
• New Zealand – China Climate Change Action Plan [PDF, 206 KB] (Implementing Arrangement on Strengthening Cooperation on Climate Change)
• New Zealand - China Climate Change Action Plan 2017 fact sheet [PDF, 93 KB]

Embassies

New Zealand is represented in China by the New Zealand Embassy, Beijing. New Zealand also operates four Consulates-General:

• New Zealand Consulate-General, Shanghai
• New Zealand Consulate-General, Guangzhou
• New Zealand Consulate-General, Hong Kong

China is represented in New Zealand by the Embassy of the People's Republic of China, Wellington(external link)

China Capable Public Sector programme