China continues to be New Zealand's primary trading partner, however, the era of "peak NZ-China" trade growth has passed, as confirmed by Alistair Crozier, Executive Director of the New Zealand China Council. From the signing of the FTA in 2007 till the onset of COVID, New Zealand's exports to China had increased tenfold, from $1.9 billion to $20 billion.
However, recent data up to September 2023 indicates a total trade value of $38.67 billion, a slight decrease from the $40 billion recorded in 2022. China now constitutes 22% of NZ goods and services exports (and supplies 16% of imports), a drop from the peak of 30% in April 2021.
Major companies like Fonterra, Silver Fern Farms, and Zespri continue to perform well. Notably, Zespri plans to increase its volume by at least 50% over the next two years, adding another 60,000 tons of product.
However, fewer small New Zealand businesses are entering the market. Crozier attributes this to concerns about business risks, geopolitical tensions, and the complex nature of the Chinese market. Some NZ companies have withdrawn from China or reverted to using local distributors, as confirmed by Anna May Isbey, Executive Director of the NZ Business Roundtable in China (NZBRiC), and Richard Dunsheath, NZ Trade Commissioner.
Last year, NZ Trade and Enterprise (NZTE) scaled down its resources in China due to a shift in international operations in response to customer demand. Despite this, Greater China remains a crucial export market for New Zealand.
Source: www.asiamediacentre.org.nz
