Trade: Can NZ Double Trade With China In Five Years?
July 22nd, 2010
While the talks in Seoul and Hanoi were important diplomatic impact points, Key’s prime destination was Beijing where his relatively easy access to China’s leaders was clearly evident. Key and Premier Wen Jiabao went into talks to discuss another FTA – the one in force between NZ and China. Key says he presented his goal of doubling two-way trade from $10bn to $20bn in five years, with NZ’s exports growing from $4bn to $12bn, and Premier Wen agrees it is possible. Key wants to reverse the trade balance through NZ companies exporting a lot more than they do now. He believes NZ can become a net exporter to China within the timeframe.
But despite the togetherness and the joinly-stated aims, the tricky issue of China’s moves to buy NZ’s farms remains. Key says he didn’t discuss specifics like a Chinese company’s bid to buy the Crafar farms, which probably wasn’t surprising. Pressed on this issue during a TV One interview, Key was asked whether he was sensitive about the extent to which the Chinese might want to buy farms. “I’m not xenophobic about that, or of the view this is an anti-Chinese thing. My general view is if we sell farms offshore in large numbers, that’s not a good thing for NZ simply because I don’t think it adds a lot of value. It doesn’t create a lot more jobs, it doesn’t bring anything new to the table.” Key and his Ministers know they must tread carefully here because it could easily generate a voter backlash if offshore interests start making large-scale aquisitions. But problems aside, China’s willingness to engage Key in top-level talks shows the close and growing relationship between the two countries.
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Duncan Cotterill