Summary
Bilateral ties between China and New Zealand have hit fresh turbulence amid anti-China remarks from New Zealand politicians. On 4 June, China imposed entry bans on four New Zealand MPs who had visited Taiwan. On 29 July, Foreign Minister Winston Peters told Chinese-born MP Lawrence Xu-Nan to 'go back to your own country' during a parliamentary question, while making disparaging comments about China's system.
Xu-Nan, who moved to New Zealand from Tianjin in 1994 and was elected to parliament in 2024, was the target of Peters' remarks. China responded through three channels: public remarks by Ambassador Wang Xiaolong, a stern representation by the embassy, and a statement by Foreign Ministry spokeswoman Mao Ning, criticising those who exploit China for their own agenda. The episode highlights how some New Zealand politicians have politicised immigration and election anxiety.
Commentary
New Zealand politicians are playing on immigration to stoke election anxiety, a move that could heighten bilateral tensions in the short term. As China's largest food trading partner, New Zealand relies on the Chinese market for roughly 30 percent of its exports. Co-operative models such as Fonterra and Zespri are highly sensitive to policy shifts.
Small business owners should be wary: if diplomatic friction spills over into trade, primary produce could face non-tariff barriers or consumer sentiment boycotts. However, with tariffs already near zero under the upgraded Sino-New Zealand FTA and deeply embedded supply chains, a complete decoupling is unlikely. The politicisation of immigration also affects services – if education and tourism sectors fall under consumer suspicion, it would directly hit the many small hospitality businesses in the South Island.
Exporters to China should consider diversifying risk while using the RCEP framework to explore alternative markets in Southeast Asia. Only by staying cautious can they hold onto long-term market share amid a volatile bilateral relationship.
Keywords: New Zealand, anti-China, China's criticism, Peters, Xu-Nan, entry ban, Taiwan issue
Source: None
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