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RegionsNew Zealand and China have a relationship that started in the 1840’s. Since New Zealand and China established diplomatic relations in December 1972, the relationship has developed rapidly, particularly in recent years.
The first Chinese immigrant to New Zealand is thought to have been Appo Hocton, who arrived in Nelson in 1842. The first large scale influx 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 but this came to a standstill in 1949, when the People’s Republic of China was formed. Today tens of thousands of Chinese students and hundreds of thousands of Chinese tourists come to New Zealand each year, and visits between political leaders and heads of state take place regularly.
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.
To understand more about New Zealand’s bilateral relationship with China, please see this helpful infographic [PDF, 2.5 MB].
China attributes “five firsts” to New Zealand:
But New Zealand’s innovative relationship with China extends beyond its trading relationship, and into areas including aid cooperation and mutual recognition of each other’s systems. For example:
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 and there were over 34,000 Chinese student enrolments in New Zealand in 2016.
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 over 400,000 visitors in 2016.
|
Total trade in goods |
$19.7 billion |
|
|
Exports to China |
$9.4 billion |
Top exports: dairy, wood products, meat |
|
Imports from China |
$10.3 billion |
Top imports: machinery, clothing & apparel |
|
GDP |
US$11 trillion |
|
| GDP per capita | US$8,239 | (NZ GDP per capita is US$36,254) |
| GDP growth | 6.7% | |
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. A target to reach $20 billion in two-way goods trade by 2015 has already been revised up to $30 billion by 2020.
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.
China is New Zealand’s largest education market, with 34,000 Chinese student in New Zealand in 2016. Chinese tourists numbered more than 400,000 in 2016. China is New Zealand’s second-largest source of visitors after Australia. While education and tourism are the biggest service exports, 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$2.9 billion in 2016
Investment between New Zealand and China including Hong Kong has been growing strongly in recent years, reaching NZ$ 6.2 billion in 2016. Chinese investment exists across a diverse range of sectors. Some recent high profile Chinese investments in New Zealand include into Envirowaste and Waste Management, Fisher and Paykel Appliances, Synlait, and PGG Wrightson. Large New Zealand investments in China include Fonterra and Fletcher Building's Formica Group.
We have a free trade agreement with China:
We're also negotiating a regional free trade agreement that includes China:
New Zealand no longer has an official aid programme in China — this stopped in 2005. However, we still contribute approximately $300,000 a year through the New Zealand Embassy in Beijing, which funds small-scale projects that reduce poverty and contribute to a more secure, equitable and prosperous China.
The New Zealand-China Climate Change Action Plan 2017 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.
The two countries also agree to cooperate more in international climate change negotiations.
The action plan was announced in March 2017 during Chinese Premier Li Keqiang’s visit to New Zealand. It gives practical effect to the broad approach set out in the New Zealand-China Climate Change Cooperation Arrangement signed by the two countries’ leaders in 2014.
The New Zealand Government has recently set up the 'China Capable public sector programme'. This programme aims to attract, develop, retain and deploy China expertise across New Zealand's public sector agencies.
China is New Zealand’s second largest trading partner, and our largest goods trading partner, and is different from our traditional trading partners in many respects, including culture and language. Therefore the China Capable public sector project aims to develop China expertise across our public sector agencies. This is an all-of-government project that is currently being led by MFAT.
Chinese Premier Li Keqiang visited New Zealand from March 26-28. A number of initiatives between China and New Zealand were signed during his visit. The full list is on the Beehive website (external link). These initiatives included nine arrangements signed on behalf of a number of government agencies. These include:
Memorandum of Arrangement on Strengthening Cooperation on the Belt and Road Initiative between the Government of New Zealand and the Government of The People’s Republic Of China. Download the memorandum [PDF, 495 KB].
Arrangement between the Ministry of Foreign Affairs and Trade and the Ministry of Commerce of The People’s Republic Of China on Cooperation on Electronic Commerce. Download the arrangement [PDF, 431 KB].
We were pleased to have the New Zealand delegation in Beijing 25-27 April for the first round of the New Zealand-China FTA upgrade negotiations.
On Friday 21 April 2017, the life of Rewi Alley was celebrated during a commemorative event at the Great Hall of the People in Beijing.
China’s Premier Li Keqiang visited New Zealand from 26 – 29 March, accompanied by his wife Madame Cheng Hong.
Immigration New Zealand has now made UnionPay cards available as a payment option for its online applications.
