Don't let our differences become a chasm, Chinese Premier Li Qiang urges New Zealand

China and New Zealand have agreed to deepen economic ties as Premier Li Qiang warned that both countries must stop their differences becoming a "chasm" between them.

"China is committed to working with the New Zealand government to renew our long-standing friendship, carry forward the pioneer spirit and upgrade our comprehensive strategic partnership," Li told a joint press conference with New Zealand Prime Minister Christopher Luxon in Wellington.

"We agree on the need to expand the scale of bilateral trade and investment cooperation."

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He also said it was "natural" that the two countries "don't always see eye-to-eye with each other on everything".

"Such differences should not become a chasm that blocks exchanges and cooperation between us," Li said, adding they should use them to "learn from each other and grow together".

He also said China would allow New Zealanders to visit the country without a visa, but did not offer any further details, and urged Wellington to support Hong Kong's accession to the Regional Comprehensive Economic Partnership (RCEP), a major Asia-Pacific free-trade agreement.

Luxon said trade, tourism and educational links benefited both countries. "New Zealand has much to offer China as a source of high-quality food and innovative products and services, which can boost productivity and improve economic output," he said.

On Thursday, the first day of Li's trip, Beijing and Wellington announced the official launch of negotiations on the services trade as part of an update to their free-trade agreement agreed two years ago.

New Zealand Trade Minister Todd McClay said: "The negotiations will focus on updating the rules for trade in services between the two countries.

"The opportunities for kiwi services companies in China are significant. The launch of negotiations today is an important step to realising this opportunity."

New Zealand is the first leg of a week-long tour by Li which also includes Australia and Malaysia.

It is the highest-level Chinese visit to New Zealand since 2017 and marks the 10th anniversary of the establishment of a comprehensive strategic partnership between the two countries.

The trip comes at a time of growing concern about competition between the United States and China for influence over Pacific island nations.

But while New Zealand, a member of the Five Eyes anglophone intelligence-sharing alliance, has been seen as one of the less hawkish US allies regarding China, relations have still come under strain in recent years and New Zealand has expressed interest in joining an expanded version of the Aukus security pact between the US, Britain and Australia.

Luxon echoed Li's comments about managing disagreements, saying "it is natural that we will raise our differences with China consistently and predictably".

He said that he raised a number of issues that "speak to our core values", including human rights and foreign interference, with Li

Luxon also said they discussed issues such as the South China Sea and the Taiwan Strait, adding New Zealand hopes for a "de-escalation" to reduce the risk of misunderstandings or accidents that threaten stability.

But he said there were "huge" opportunities for the future and the countries signed seven cooperation agreements after the talks covering areas such as trade, New Zealand agricultural exports, technology and climate change.

"China is ready to tap the potential for working with New Zealand in emerging areas such as the digital economy, green economy, new energy vehicles and creative industries and to actively participate in transport, investment and infrastructure development in New Zealand," Li said.

Li said that China is willing to strengthen communication and coordination with New Zealand on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Beijing applied to join that free-trade agreement, which has a different membership to RCEP, three years ago but its application has made little progress.

The value of New Zealand imports to China fell by 14 per cent from a year earlier in Us dollar terms during the first four months of 2024, according to Chinese customs data. In the same period, Chinese exports to the island nation dropped 2 per cent.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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