Ambassador Wang Xiaolong’s Address at NZIBF Luncheon

Summary

On 12 May 2026, Chinese Ambassador to New Zealand Wang Xiaolong attended and addressed the New Zealand International Business Forum (NZIBF) luncheon at the Wellington Club. Ambassador Wang expressed high appreciation for NZIBF's long-standing efforts in promoting New Zealand's openness and international trade and economic cooperation, and thanked business leaders for their contributions to China-New Zealand economic and trade relations. Citing President Xi Jinping, he noted the world is undergoing unprecedented changes unseen in a century, with rising uncertainty in global economic growth, geopolitical conflicts, supply chain disruptions, and resurgent unilateralism and trade protectionism, all of which severely impact the international trade order and increase business costs and risks.

He emphasised that a rules-based multilateral trading system serves the common interests of all nations and that China firmly upholds free trade, abides by WTO rules, and opposes actions that undermine the multilateral system. To New Zealand exporters and industry representatives, he outlined the 'China Approach' – the stability and potential of China's economy. He stated that China's economy is characterised by a solid foundation, numerous advantages, strong resilience, and significant potential, with its long-term positive trend unchanged; average annual growth was around 6.11% during the 14th Five-Year Plan period, and GDP surpassed RMB 140 trillion for the first time in 2025, with annual increments equivalent to the size of a medium-sized economy.

In Q1 2026, GDP grew by about 5% year-on-year and 6.10% quarter-on-quarter; goods imports and exports rose 15%, with imports up 19.6%, demonstrating strong resilience and endogenous momentum. He detailed the vast potential of China's market: over 1.4 billion people, with the middle-income group exceeding 800 million in the next decade; total retail sales of consumer goods surpassed RMB 50 trillion in 2025, with consumption contributing 52% to economic growth and service consumption accounting for 46.1% of per capita consumer spending; the recent May Day holiday saw over 1.5 billion inter-regional trips, with diverse business forms stimulating consumption. He also introduced the core directions of the 15th Five-Year Plan: innovation-driven development – China's R&D investment is approaching RMB 4 trillion, about 2.8% of GDP; the value added of core digital economy industries rose from 7.8% of GDP in 2020 to over 10.5% in 2025, exceeding RMB 14.7 trillion, with a focus on strategic emerging industries like AI and integrated circuits; and green development – upholding the concept that 'lucid waters and lush mountains are invaluable assets', China has sustained an average annual economic growth of 6.1% since 2012 with an average energy consumption growth of 3.4%, while carbon emission intensity has dropped by over 35%.

China is building the world's largest renewable energy system, with wind, solar, and new energy vehicles aiding global green transition. The address aimed to boost confidence among New Zealand's business community in China's economy, emphasising that through collaboration, stability and certainty can be found in an uncertain world, injecting new momentum into bilateral economic and trade ties. No specific industry tariffs or market access changes were mentioned, but the overall message conveyed China's continued market opening and commitment to deepening economic and trade cooperation with New Zealand.

Commentary

From the perspective of a New Zealand small-to-medium enterprise owner, Ambassador Wang Xiaolong's address provides an important window into understanding the future direction of China, New Zealand's largest trading partner. The most directly positive signal is the ongoing expansion and upgrade of China's consumer market. The data presented – total retail sales of consumer goods exceeding RMB 50 trillion, service consumption nearly half, and the middle-income group set to surpass 800 million – not only show immense scale but also indicate a shift in consumption patterns from goods to services and from basic needs to quality.

For New Zealand exporters, traditional strengths such as high-quality agricultural products and food (dairy, meat, fruit, wine) are well positioned to benefit from China's consumption upgrade. In particular, the rising share of service consumption opens greater space for New Zealand's service exports such as education, tourism, and healthcare. For instance, the recent May Day holiday saw 1.5 billion inter-regional trips spurring diverse business forms directly linked to import demand in tourism, dining, and retail – where New Zealand's clean, premium image can find precise entry points.

Second, the two priority areas of innovation-driven and green development also present new opportunities for New Zealand businesses. The rapid expansion of China's digital economy and the focus on AI and integrated circuits may create demand for New Zealand's tech services, R&D collaboration, and high-end manufacturing components; while China's construction of the world's largest renewable energy system offers potential cooperation in clean energy technology, carbon emissions solutions, and low-carbon certification for agricultural products. On the other hand, the repeated references to global uncertainties – geopolitical conflicts, supply chain disruptions, resurgent unilateralism and protectionism – serve as a caution.

The current trend of fragmentation in the international trade environment may lead to increased non-tariff barriers, volatility in logistics costs, and sudden policy shifts. For New Zealand SMEs reliant on long-term contracts and stable supply chains, this implies a need for more cautious risk management and avoidance of over-reliance on a single market or channel. Moreover, while China emphasises upholding the multilateral trading system, real-world geopolitical frictions could still indirectly affect the bilateral trade environment, such as trade diversion effects or shipping blockades caused by third-party factors.

Additionally, the address did not mention specific trade facilitation measures, tariff adjustments, or industry access breakthroughs, so substantive policy dividends may be limited in the short term, requiring patience and continued market investment. Overall, Ambassador Wang's speech paints a picture of a dynamic and opportunity-rich Chinese market, but also reminds New Zealand businesses that in the midst of global upheaval, cooperation and risk coexist. For operators, this means seizing the long-term trends of China's consumption upgrade and green transition, actively investing in branding, channels, and localisation, while also building diversified supply chains and market dispersion strategies to cope with potential volatility.

Going forward, if the two countries can deepen cooperation in areas such as digital trade and mutual recognition of low-carbon standards, new business growth points may emerge – but this process requires close monitoring of policy developments and flexible strategy adjustments.

Keywords: China, New Zealand, economic and trade cooperation, multilateral trade, Chinese economy, consumer market, innovation-driven development, green development, 15th Five-Year Plan, supply chain

Source: Embassy of China in New Zealand – Bilateral Relations