By Qin Sheng
China and New Zealand established diplomatic relations after New Zealand officially recognized the government of the People's Republic of China as the sole legal representative of China in December 1972. In the 50 years of trade partnership and cooperation since then, the two countries have set an example for international relations — that despite their ideological, cultural and institutional differences, countries can build a constructive relationship based on mutual respect, mutual trust and mutual benefit.
As Chinese President Xi Jinping said recently, China and New Zealand together have created many "firsts", highlighting the pioneering feature of bilateral relations in many fields including trade, education, tourism and the fight against climate change.
The 1990s was a significant period in China's history as the country applied to join the World Trade Organization in that decade. And at a time when China was facing various kinds of challenges, New Zealand was the first developed country to support China's accession to the WTO by concluding bilateral negotiations. And in 2004, New Zealand became the first country to recognize China as a market economy.
New Zealand's support sent an important message to the international community that China's reform and opening-up had indeed helped transform it into a market economy.
New Zealand is also the first developed country to commence and conclude free trade agreement negotiations with China. And the China-New Zealand FTA is the most vital free trade deal for New Zealand since the Closer Economic Relations agreement with Australia in 1983. It is also the first FTA China signed with a developed country.
On Jan 26, 2021, China and New Zealand agreed to upgrade their existing FTA by increasing access to each other's market, introducing tariff-free programs and hastening the exports process so both sides could gain more benefits from the free trade deal. Thanks to the move, till October this year, bilateral trade in goods reached a record NZ$40 billion ($21.14 billion), and Chinese direct investment in New Zealand now covers hotels, primary industries, forestry, manufacturing, infrastructure, financial services and other sectors.
Besides, the China-proposed Belt and Road Initiative has helped New Zealand and China to expand collaboration in different areas. In 2015, for instance, New Zealand became the first developed country to become a prospective founding member of the Asian Infrastructure Investment Bank, and in 2017, the two sides signed a memorandum of arrangement to jointly explore ways to work together in Belt and Road projects.
New Zealand has also sent delegations to the Belt and Road Forum for International Cooperation and China International Import Expo, paving the way for jointly promoting the initiative. Also, thanks to its geographical location, New Zealand can become a global logistics center and a China-Latin America transportation hub.
That the two countries have also been cooperating in the global fight against climate change is another example of the pioneering character of their relationship. For example, in 2014, two years before the Paris Agreement came into force, China and New Zealand signed the climate change cooperation arrangement. Since then the two have held four ministerial-level dialogues on climate change where they have discussed, among other things, how to strengthen global climate governance.
Education and tourism links between the two countries have been growing over the last two decades. People-to-people exchanges have grown from both countries selecting three students each for exchange programs to China becoming the largest source of foreign students in New Zealand. The two-way tourist flow, too, has seen a rapid increase, with more than 80 direct flights operating between New Zealand and China every week during high season. In fact, China is the most rapidly-growing source of tourists for New Zealand.
The development of China-New Zealand ties is guided by regular dialogue. Regular reciprocal visits by the two countries' leaders have enhanced mutual understanding and built political trust. And the wisdom and foresightedness of the two countries' leaders are evident in every bilateral development, from the upgrading of bilateral ties to a comprehensive strategic partnership or China-New Zealand FTA Upgrade.
While regional issues in the South Pacific are becoming increasingly complicated, China, New Zealand and the Cook Islands have created a win-win situation by undertaking a tripartite development project. Using the development advantages of both China and New Zealand, the project is aimed at providing better water infrastructure facilities to the Cook Islands. This project presents a scenario which is very different from the intense geopolitical competition in the region, and shows that China and New Zealand offer a healthier way to resolve bilateral and regional issues in the Pacific and help the Pacific Island countries to overcome the challenges.
In the future, cooperation between the two sides will deepen, with green and digital being the new key words. To be sure, China and New Zealand will work together to contribute more to global development, uphold multilateralism and build an open world economy.
The author is a research fellow at the Center for Australia, New Zealand and South Pacific Studies, Chinese Academy of Social Sciences.