Hipkins courts Chinese business audience, pledges China visit within six months if Labour elected

Summary

Labour leader Chris Hipkins addressed the New Zealand Chinese Business Awards dinner, tracing the history of NZ-China relations and calling for deeper trade ties. He noted that the Labour government under Norman Kirk established diplomatic relations with China in 1972, when about 30 percent of New Zealand's exports went to the UK and there were no direct flights between the two countries. In 2008, the Helen Clark-led Labour government secured a free trade agreement with China, making New Zealand the first developed country to sign an FTA with China; since then, goods exports to China have grown fourfold.

Hipkins said the previous Labour government upgraded the FTA, extending cooperation into areas such as the environment and e-commerce. In 2023 he led a trade delegation of 29 business leaders to China, drawn from tourism, technology, dairy, wool and digital services—the first major trade mission since the COVID-19 pandemic. He said the message was clear: New Zealand welcomes trade and values its relationship with China.

Hipkins said good international relationships are built on trust, stability and consistent policy positions, and require sustained time, effort and leadership. He said the next Labour government would continue to support small and medium-sized exporters, help more firms benefit from stable trade ties, and push for trade diversification—with growth also coming from agritech, green tech, fintech, software, gaming and creative industries beyond traditional agriculture. He noted that for a country of about 5 million people, trade is a key pillar of the economy, and that signing an FTA is only the first step; building and maintaining good trade relationships requires long-term commitment and ongoing effort.

Commentary

Hipkins' remarks at a Chinese business event highlight the continuity in the China policy of New Zealand's major parties. Since Labour drove the establishment of diplomatic ties in 1972 and the FTA in 2008, it has consistently viewed China as a core trading partner. China currently takes about a quarter of New Zealand's goods exports and has been the largest trading partner for many consecutive years.

For local SMEs, Hipkins' promise to visit China within six months if elected, and his emphasis on supporting smaller exporters, sends a signal of policy stability. But it is worth noting that National also prioritised trade with China while in government, and there is no fundamental disagreement between the two parties on pragmatic cooperation with China, so firms should not pin all their hopes on a single party. From an industry perspective, New Zealand's exports to China remain dominated by primary products such as dairy, meat and wood, with large firms like Fonterra and Zespri leading the way.

However, since the FTA upgrade, tariffs and non-tariff barriers have been further reduced in areas such as e-commerce and environmental services, offering new entry points for small and medium-sized tech and creative firms. New Zealand's gaming and software sectors, for example, have grown rapidly in recent years, and China's digital content market is vast, but local firms often lack knowledge of Chinese market channels and the regulatory environment. The trade delegation Hipkins mentioned covered technology and digital services, showing the government's intent to diversify the export mix, but SMEs still need to actively gather market intelligence and use resources such as New Zealand Trade and Enterprise.

In addition, Hipkins stressed trade diversification, citing emerging fields such as agritech, green tech and fintech. These areas align with China's 'dual carbon' goals and digital transformation needs, but competition is intense, with Chinese domestic firms developing rapidly in these fields. If New Zealand SMEs want a share, they must rely on unique technology or services rather than brand halo alone.

It is notable that Hipkins did not mention specific tariff adjustments or new market access measures; his commitments are more symbolic. For businesses, the focus should be on actual policy implementation, such as enforcement of FTA upgrade provisions and export credit support. With global economic uncertainty rising and China's domestic demand growth slowing, New Zealand exporters need to manage risk and avoid over-reliance on a single market.

Keywords: Hipkins, NZ-China relations, free trade agreement, Labour Party, trade delegation, trade and economic cooperation, trade diversification, small and medium-sized exporters

AI illustration on MiDeer Observer

Source: Chinese Headlines