China, NZ advance services trade negative list talks

Summary

The 34th session of the China-New Zealand Joint Trade and Economic Commission was co-chaired by Vice Minister of Commerce Li Chenggang and New Zealand Ministry of Foreign Affairs and Trade official Mao Rui in Beijing on June 5. Both sides agreed to push ahead with negotiations on a negative list for services trade. China underscored the importance of upholding the multilateral trading system, while New Zealand expressed its welcome for Chinese investment.

Commentary

For New Zealand's small and medium-sized service exporters, progress on a negative list for services trade could deliver concrete benefits. At present, China's services imports from New Zealand are largely concentrated in tourism and education, with education services exporting about NZ$1 billion a year. Professional services such as accounting, law and environmental consulting, however, face significant access barriers.

Under a negative list regime, New Zealand's small and medium-sized professional service firms would gain a more transparent and predictable route into the Chinese market, particularly in environmental technology and agricultural consulting – areas that align with China's rural revitalisation strategy. On the other hand, lower investment thresholds for Chinese firms in New Zealand could heighten competition in the local construction and hospitality sectors. Yet given New Zealand's welcoming stance, the short-term impact is more likely to boost local employment and supply chain procurement.

Negotiations will take time, but businesses can begin studying China's existing negative list structure and prepare for mutual recognition of qualifications and local partnerships.

Keywords: China-New Zealand, Joint Trade and Economic Commission, Li Chenggang, Mao Rui, services trade, negative list, multilateral trading system, free trade agreement

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