China trade growth cushions impact of COVID-19 in New Zealand: Report

02 May '22

2 min read

Pic: New Zealand China Council

China is now accepting 32.6 per cent of New Zealand’s total exports, up from 25 per cent in 2018, according to a new report released by the New Zealand China Council (NZCC), which said after a small decline in 2020, goods export to China rebounded strongly by $3.3 billion (19.8 per cent) in 2021, while imports from China increased by $3.1 billion (26 per cent).

Total two-way trade of $37.7 billion in 2021 reconfirms China as New Zealand’s largest trade partner, says the report, titled ‘In Perspective: The New Zealand-China Trade and Business Relationship 2022 Update’.

It shows that trade with China has played a significant role in pulling the New Zealand economy through the COVID-19 pandemic.

NZCC chair John McKinnon says China’s market performance was welcome at a time when exports to other key markets like Australia, the United Kingdom and Japan dipped due to the pandemic but notes supply chains and shipping costs still pose major challenges for both exporters and importers.

Report author John Ballingall from Sense Partners says exporters must continue to assess risks as well as opportunities when considering heavy market exposure, NZCC said in a press release.

“The potential for trade disruption in a variety of forms is ever-present, including currently. Overseas experience demonstrates that while trade disruption can hamper bilateral trade flows in specific products, the aggregate impact on exports has been more muted. Much depends on the ability of firms to switch between markets. An informed understanding of specific export sectors and products in the Chinese market will help our companies to assess and plan”, Ballingall says.

Fibre2Fashion News Desk (DS)