China, Cook Islands broaden strategic partnership

Summary

China and the Cook Islands have deepened ties since establishing diplomatic relations on 25 July 1997, upgrading to a comprehensive strategic partnership in 2018. Bilateral trade surged from US$145,000 in 1997 to US$12.2718 million in the first 10 months of 2023. In July 2023, Qian Bo, China's special envoy for Pacific island countries, visited the Cook Islands and attended the 52nd Pacific Islands Forum in November.

On 2 April, foreign ministry spokeswoman Mao Ning said the Cook Islands is an important partner for China in the South Pacific, adding that the relationship does not target any third party and should not be interfered with by any third party.

Commentary

The Cook Islands is in a free association with New Zealand, using the New Zealand dollar and reliant on New Zealand aid and remittances. Since the relationship was upgraded to a comprehensive strategic partnership, China has funded the Rarotonga water supply project and the Apii Nikau school, with such infrastructure often incorporating Chinese standards and equipment. For New Zealand small and medium-sized enterprises (SMEs), these improvements to local logistics and public services could lower operating costs.

However, Chinese electromechanical products are entering the market on price, eroding New Zealand's traditional share of supply. Bilateral trade in the first 10 months of 2023 was about US$12.27 million, more than 80 times the 1997 figure and growing faster than New Zealand's trade with the Cook Islands. SMEs may look to tourism and retail support services driven by Chinese investment, while adjusting product ranges to avoid direct price competition.

As supply chains in the South Pacific restructure, New Zealand firms are no longer the sole option.

Keywords: Cook Islands, China, diplomatic relations, comprehensive strategic partnership, trade volume, Pacific Islands Forum, foreign ministry spokeswoman

Source: Baidu Baike