Li soothes trade nerves
Premier confident ‘despite twists and turns’
Chinese Premier Li Keqiang has acknowledged the intense focus on China’s relationship with the US and provided assurances that it remains strong and positive for New Zealand’s interests.
Li and Prime Minister Bill English attended a gala lunch at the Langham Hotel in Central Auckland yesterday.
“Let me stress that the shared interests of our bilateral relationship far outweigh the differences,” he said of China’s relationship with the US.
Li expressed confidence in the future “despite twists and turns”.
He assured the audience at the lunch that it would remain good for New Zealand’s interests just as the strong New Zealand-China relationship would be good for Australia and the United States.
Speaking after the event, English said he and Li had discussed China’s relationship with the new US administration during their talks.
“Because he [Li] is an expert on both economies he understands and explains very well the economic inter-dependence of China and the US. They both realise that they need each other if they’re going to lift incomes, particularly in China where there are strong expectations about rising incomes,” he said.
Neither leader was particularly keen to talk about US President Donald Trump by name.
“As he [Li] said today it’s a relationship that goes through a few twists and turns but it is fundamentally sound,” English said.
Trump has derailed the TransPacific Partnership. He has also talked about imposing harsh tariffs, openly accused China of currency manipulation and indicated that the US might not treat World Trade Organisation rulings as binding.
At the G20 meeting of Finance Ministers in Germany this month, key provisions promoting free trade and committing to end protectionist policies were dropped from the final communique.
That has sparked fears that the US is pushing the world to a more protectionist trade era.
“It is a risk,” English said on Monday.
“If the US implemented some of the things that they’ve talked about then it wouldn’t just affect us it would affect the world trading system. We’re optimistic that the strength of the arguments for open trade will ultimately prevail.”
In his speech Li reiterated China’s commitment to global free trade.
“The world today is a community with a shared future and that is why we uphold free trade.”
On Monday English and Li signalled that negotiations for an “upgrade” to the New Zealand-China free trade agreement will begin next month — a step the Prime Minister said would help boost trade to $30 billion by 2030.
The talks are expected to start on April 25.
“The upgraded FTA — if compared to China’s FTAs with other developed countries — will represent the most advanced level,” Li told the Auckland lunch.