Li says China not dumping steel
Chinese Premier Li Keqiang has rejected claims China is dumping steel in New Zealand, and made a pointed reference to the level of dairy exports to his country.
The Ministry of Business Innovation and Employment launched a probe into alleged steel dumping amid suggestions last year that China might take trade reprisals if an investigation went ahead
In a long and detailed answer during a joint press conference with Prime Minister Bill English – which Li returned to after being handed a note by an official – he said 90 per cent of China’s steel products were consumed domestically and only 10 per cent exported, so exports were only a small fraction of production.
Given the international picture, with a known oversupply, China was phasing out some outdated capacity, Li said through a translator.
He said some zinc-coated steel was imported from China but it amounted to less than 5 per cent of this country’s imports of steel, so most came from other countries.
Li said China was not dumping steel products in New Zealand, noting that 50 per cent of dairy products imported into China came from New Zealand and ‘‘we haven’t said NZ is dumping in China’’.
He also pointed to the trade imbalance in New Zealand’s favour and said the two countries needed to be open-minded in addressing that.
English said the issue of steel dumping did not come up during their bilateral talks.
‘‘We understand it is a sensitive issue for China. There’s other cases around the world of a similar nature.’’
He said the MBIE investigation was being undertaken in an official process, at arms length from the Government. It would be seen through to a conclusion.
Li’s response, in mentioning steel dumping and then dairy, gave ‘‘a sense of the robustness of the relationship. These are issues that get talked about in pretty testing ways, and that’s how it should be,’’ English said.
English also announced a firm date for formal negotiations to begin to upgrade the 8-year-old free trade agreement between the two countries. An upgrade has been sought since former prime minister John Key’s state visit to China in April last year, and were confirmed in talks on the sideline of the Apec meeting in Peru in November.
The first round of formal talks will begin April 25-27 in what Li said was the most advanced level of free trade deal between China and any developed country.
‘‘Since coming into force in 2008, two-way trade between our two countries has tripled, to $23 billion, creating jobs and opportunities for people in both countries,’’ English said.
‘‘An upgrade will ensure this momentum continues and ensure that the FTA remains a modern agreement that tackles barriers our exporters face. It will assist progress towards our target of $30b two-way trade by 2020.’’
At a signing ceremony before the press conference, the two leaders also penned their agreement to work together on 12 documents, across areas including meat exports, tourism, health, infrastructure and education. Access to China for chilled meat from 10 New Zealand meat processors has been granted, initially on a six-month trial with a view to later expanding trade.
A ‘‘mutual recognition of trusted exporters’’ will facilitate faster border clearance times for the recognised New Zealand exporters, accounting for nearly half of New Zealand’s $9.4b of goods already being exported to China. The two countries have also agreed to work closer together on a climate change action plan, to transition to lower carbon economies.
The number of direct flights possible between China and New Zealand is expected to ramp up, from 49 to 59 under the Air Services Agreement.
Meanwhile, a framework to explore new economic opportunities, including in China’s ‘‘Belt and Road’’ plan to expand infrastructure and trade links through Asia and the Pacific, was expected to see closer cooperation on regional infrastructure projects, and e-commerce – a platform that allows New Zealand companies to sell directly to Chinese consumers.
English said Tertiary Education Minister Paul Goldsmith would attend a ‘‘Belt and Road’’ summit in China in May.
Li said the Maritime Silk Road element of that would go through the South China Sea, where China is building bases on disputed islands and reefs, saying that would contribute to stability.
He said that with 100,000 ships passing through the area each year, there had been no pirate attacks.
Li was formally welcomed to New Zealand with a powhiri and traditional ceremony on the lawn of Government House.
English said he was hopeful Li’s visit would further strengthen ties between the two countries.
‘‘I appreciate that your visit reflects the personal commitment that you have to the China-New Zealand relationship.’’
He said the relationship was now in its 45th year and in great shape.
‘‘It’s deep and it’s broad and my government and I are committed to its ongoing success.’’