Balancing act with China
The visit of Chinese Premier Li Keqiang puts a spotlight on New Zealand’s need for the superpower. It also shows how awkward the relationship is. New Zealand has clearly benefited from trade with China, but trading with the giant always has its problems. New Zealand must not bow to China when its vital interests are at stake.
The premier has, for instance, dismissed claims that China is dumping steel in this country, and notes that 50 per cent of Chinese dairy imports came from New Zealand ‘‘and we haven’t said New Zealand is dumping in China’’.
That remark retains just a hint of threat, which New Zealand should ignore. The officials of the Ministry of Business, Innovation and Employment must continue with their investigation of the steel dumping claims and do it professionally. If they uphold the claims, then New Zealand is in the awkward position of offending its economic patron.
But, in international trade, the rules are the rules and New Zealand must insist that they are observed.
Populists have also expressed alarm about Chinese labourers coming to New Zealand to work on infrastructure, such as road and rail, if Chinese companies win the relevant tenders. Here, it’s important to rule out any racist notion that Chinese workers are somehow objectionable in themselves.
The possibility of Chinese labourers coming here, however, does underline New Zealand’s failure to ensure its own people are fully skilled and ready for work. This would be particularly so if Chinese workers were to work on the proposed roads in Northland, where unemployment, especially among young Maori, is a dreadful problem.
New Zealand has to do better in this. If it doesn’t, the populist cry against China and Chinese investment will get an unjustified boost.
Talk about deepening the free trade agreement with China, moreover, also raises the awkward issue of foreign investors’ easy access to houses and farmland here. The house problem could be easily solved: New Zealand should simply ban sales to nonresident foreigners.
Many countries do this, and such a ban would not discriminate between nationalities. New Zealand has a housing crisis and it has no responsibility to house foreigners who do not live here.
Finally, there is mounting concern about the ease with which foreigners can buy farmland in New Zealand. It is disturbing to find out that a good deal of land has simply failed to gain Overseas Investment Office approval and that this has resulted in derisory fines. This suggests that the system is flawed and that the OIO is not in control. That cannot continue.
New Zealand has an awkward balancing act with China, made more difficult by the fact China is a police state, but can count on uncritical support from a surprisingly large part of New Zealand’s establishment.
Too many pundits and cheerleaders insist there are no problems with China and the way forward is simply to build ever closer links. This is nonsense. New Zealand’s balancing act is difficult and unavoidable.
New Zealand need not always bow to China.