Labour puts NZ-China ties in election spotlight

Summary

Ahead of New Zealand's general election on 7 November 2026, the Labour Party held a public meeting on 28 October at Panmure Community Hall in Auckland focused on an independent foreign policy and New Zealand-China relations. Chaired by Labour's Auckland Central candidate Naisi Chen, the meeting featured former foreign minister and former Labour leader Phil Goff and Labour's foreign affairs spokesperson Vanushi Walters as keynote speakers. Topics included independent foreign policy, repairing New Zealand-China relations, opposing racism and upholding migrant rights.

Walters said New Zealand should set foreign policy based on its own national interests and values, and criticised the Prime Minister for previously saying New Zealand could be a 'force multiplier' for the United States in the Pacific. Goff criticised Foreign Minister Winston Peters for 'kowtowing to the United States' and expressed strong displeasure at Peters' remark telling Chinese-New Zealand Green MP Lawrence Xu-Nan to 'go back to your own country', saying 'migrants built our country and made it strong'. Walters also criticised political leaders for making such comments when racism already exists in society.

The meeting also discussed migrants' social contribution, sense of community belonging and equal rights, and the impact on New Zealand society and the Chinese community.

Commentary

Labour's meeting placed foreign policy alongside migrant rights, highlighting a shift in political discourse in an election year. The criticism from Phil Goff and Vanushi Walters directly targets the current government's pro-US approach, while Winston Peters' remarks about the Chinese-New Zealand MP have become a flashpoint for the immigration issue. For New Zealand's small and medium-sized business owners, fluctuations in foreign policy directly affect the stability of trade with China.

China is New Zealand's largest trading partner, with two-way trade reaching NZ$38 billion in 2025, with dairy, timber and meat accounting for the bulk of exports. If the National-led government continues to move closer to the United States, it could trigger Chinese countermeasures and harm exporters' interests. Labour's call to repair New Zealand-China relations could bring more predictable market access for SMEs.

However, businesses also need to be wary of the short-term nature of political manoeuvring—whichever party governs, New Zealand must walk a tightrope between security allies and economic partners. The immigration issue also has business implications: the Chinese community is an important customer base and labour source for SMEs, and if racist rhetoric spreads, it will weaken social cohesion and dampen consumption and investment. From an industry perspective, SMEs account for about 40 percent of New Zealand's exports to China, making them particularly sensitive to policy fluctuations.

Labour's emphasis on independent foreign policy could mean more active efforts to upgrade the New Zealand-China free trade agreement and reduce non-tariff barriers, a potential boon for exporters of specialty products such as dairy, honey and wine. On the other hand, if Labour adjusts immigration policy after taking office, it could affect the supply of skilled workers, especially in construction, agriculture and hospitality. The meeting did not put forward specific economic and trade proposals, and SME owners should watch for subsequent policy details rather than judging on slogans alone.

Keywords: New Zealand Labour Party, New Zealand-China relations, independent foreign policy, 2026 general election, Phil Goff, Vanushi Walters, migrant rights, anti-racism, Auckland meeting, Winston Peters

Photo by timjl on Pixabay

Source: Chinese Headlines