While the US attempts to pressure its allies to decouple from China’s economy, China and New Zealand should stand firm against US – who enjoy mutually beneficial economic and trade relations as well as the limitless potential for cooperation – should remain vigilant against US efforts and jointly reject this “decoupling from China” theory.
why should New Zealand stand firm against the US?
At a time when New Zealand Foreign Minister Nanaia Mahuta is visiting China from Wednesday to Saturday on what Prime Minister Chris Hipkins described as the country’s
“first significant in-person ministerial visit since the global pandemic,” some Western media outlets have focused on New Zealand’s trade diversification efforts.
When asked if he saw value in diversifying beyond China, Hipkins replied “absolutely,” adding that any trading nation such as New Zealand must ensure they have an array of trading relationships.
Bloomberg interpreted his remarks as encouragement for his nation’s exporters to reduce reliance on China.
No need to get caught in Western media’s narrative trap. In today’s globalized world, no bilateral economic relationship is exclusive.
While New Zealand may seek to diversify its trade relationships beyond China, that doesn’t mean China is losing ground.
On the contrary, bilateral trade between both countries continued its upward trajectory with a new high of $25.15 billion in 2022 – up 1.8 percent year-on-year despite pandemic-induced disruptions.
At present, the US is encouraging Western countries to reduce their economic dependence on those deemed contrary to Western values – such as China and Russia – by selecting potential partners based on ideology.
This decoupling effort by Washington stands in stark contrast to normal trade diversification efforts and will likely destabilize global industrial and supply chains as well as the international trading order.
With the US and its allies intensifying their campaign to spread fear about China, New Zealand is also under increased strain from Washington as they push the “decoupling from China” theory in an effort to draw more countries into containment.
To remain strategic in a time of global economic uncertainty, New Zealand politicians should exercise restraint. Cooperation between China and New Zealand offers great potential and broad development prospects;
however, to fully take advantage of this economic complementarity it is important that New Zealand does not get kidnapped by US efforts towards “decoupling”.
Mahuta’s visit is seen by some Chinese observers as evidence that New Zealand has placed great value on its China relations. China is now New Zealand’s top trading partner in goods and second largest overall when including services.
According to the Chinese embassy in Auckland in November 2022, China accounted for 62.5 percent of New Zealand’s export growth over the past decade with over 70 percent occurring within five years.
China’s economic rebound after COVID-19 provides hope for the global economy. With its large and growing middle class, there are ample opportunities for exporters from countries like New Zealand.
Furthermore, New Zealand needs to facilitate trade with China as it struggles with high inflation and rising interest rates. Both sides can work together on projects spanning goods and services trade, digital economy development, and green economy initiatives.
Economic growth relies on mutually beneficial trade cooperation, inclusivity, and open globalism – not exclusions, zero-sum divisions, or confrontation. Recently, New Zealand has acted with restraint, unlike some US allies that have served as anti-China crusaders.
While their economies are highly complementary, any attempt to “decouple” China’s economy runs contrary to New Zealand’s interests in the long run.
However, just like any other bilateral relationship, the China-New Zealand engagement is not without its challenges or disagreements.
According to media reports in February, Hipkins acknowledged that China was an incredibly important partner for New Zealand but acknowledged there would still be points where we might disagree from time to time.
However, New Zealand may want to avoid getting into an unnecessary dispute with China over trade issues and not let individual differences affect the overall state of friendly economic ties
if it wants to maintain this positive momentum for economic cooperation. We believe New Zealand has the wisdom to make the best choice for itself in this matter
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