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FACT SHEET: ECONOMIC AND TRADE COOPERATION BETWEEN CHINA AND NEW ZEALAND
2022-04-07 06:42


1. State of China and New Zealand Economic and Trade Cooperation

China is now New Zealand’s largest trade partner, accounting for nearly 30 percent of New Zealand’s total exports of goods and services to the rest of the world.

MFAT Working Paper (2018) estimates that the tradable sector produces 60 percent of GDP, and employs 50 percent of New Zealand’s workforce. One in four New Zealanders’ jobs are dependent on exports. There are 0.63 million New Zealanders are dependent on export sectors, among which 0.35 million are based at Auckland and 0.14 million at Canterbury. 

China accounts for 42%, 42% and 65% of New Zealand’s dairy, meat and wood exports to the rest of the world as of 2021.

Lincoln University’s Agribusiness and Research Unit (AERU) has conducted extensive research on how New Zealand’s export industries can use their credence attributes to maximise export returns. As stated in the Report of the Trade for All Advisory Board (2019), the Export Returns of China market to New Zealand is highly important in various aspects. 

2. Opportunities ahead for New Zealand on Chinese market

China has a population of over 1.4 billion and a middle income group of more than 400 million people. China’s annual import in goods and services is valued at around US$2.5 trillion. Its sizeable and growing middle class offers significant opportunities for New Zealand exporters and investors.

China’s economy surged 8.1 percent last year. GDP growth for 2022 is forecast to be “around 5.5 per cent”, and such growth is equivalent to the GDP of a medium size economy. 

China applied to join the CPTPP and DEPA in September and November 2021 respectively. China will make high-level openness commitments that exceed its existing free trade agreement practices for market access, to provide CPTPP members with market access opportunities of huge commercial benefits. China is also keeping close communications with the members of the DEPA, a new type of trade partnership agreement on digital trade signed in 2020 by New Zealand, Chile, and Singapore. China is willing to provide cooperation opportunities and a broad market for enterprises from DEPA members and have closer ties with each other for cooperation on digital economy, to make contributions to the promotion of innovation and sustainable development among members.


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