New Zealand Urged to Reduce High Dependence on China Amid Backlash Concerns

Foreign Minister: "The Anti-China Sentiment Typhoon Is Only a Matter of Time for Us"
China Is New Zealand's Largest Trading Partner... Experts Say "New Zealand's Vulnerability Is High"

Nanaiya Mahuta, New Zealand Minister of Foreign Affairs
Photo by EPA Yonhap News

[Asia Economy Reporter Kim Suhwan] New Zealand has raised the necessity of diversifying exports to reduce economic dependence on China, stating that it will also be affected due to its allies who are in conflict with China.

On the 24th (local time), Nanaia Mahuta, New Zealand's Foreign Minister, said in an interview with The Guardian, "It is clear that we cannot ignore what is happening in Australia regarding China," adding, "If these countries are at the center of the typhoon, it is only a matter of time before this typhoon approaches us closely."

Minister Mahuta stated, "We are sending a signal to the export industry that we need to think about ways to buffer when something significant happens in the relationship with China."

This is interpreted as a warning that New Zealand, which has a high export dependence on China, should prepare for possible trade retaliation if it gets caught up in the ongoing 'trade war' with China, led by some allied countries taking an anti-China stance.

In fact, China is New Zealand's largest trading partner, purchasing 28% of New Zealand's total exports. New Zealand's export volume to China exceeds the combined total of the next four countries: Australia, the United States, the United Kingdom, and Japan.

Conscious of its high dependence on China, New Zealand has maintained a close relationship emphasizing affinity with China despite pressure from the Five Eyes, a confidential intelligence-sharing alliance among the five major English-speaking countries. Last month, when Five Eyes members including the United States and Australia proposed issuing a joint statement condemning human rights issues in China, the New Zealand government stated, "Five Eyes should not be used as a channel for external messaging."

However, with close ally Australia leading a 'trade war' against China recently, New Zealand's concerns are growing. Relations between the two countries rapidly deteriorated after Australia raised the issue of China's responsibility for COVID-19 last year, leading to bans on each other's product imports and ongoing friction.

Additionally, allegations of forced labor in China's Xinjiang Uygur Autonomous Region have been raised consecutively, spreading critical public opinion against China within New Zealand.

New Zealand Prime Minister Jacinda Ardern indirectly criticized the widening gap between New Zealand and China earlier this month, and the New Zealand government welcomed sanctions imposed by the United Kingdom, the United States, the European Union (EU), and Canada regarding the Xinjiang Uygur allegations.

However, if New Zealand formally joins the anti-China front and faces actual trade retaliation from China, the impact is expected to be significant. An international law expert said, "What can be obtained in New Zealand can be obtained in any other country," adding, "China knows New Zealand's vulnerabilities. New Zealand's stance so far shows that it is aware of these vulnerabilities."

This content was produced with the assistance of AI translation services.