New Zealand’s efforts to win a trade deal with India may have ‘damaged’ its relationship with China

China’s ambassador to New Zealand has indirectly criticised the Prime Minister’s trip to India, implying some comments damaged the NZ-China relationship. 

Christopher Luxon has been leading a diplomatic mission to India to establish a broader relationship with the country, including expanding security and defence links.

In a post on Twitter, Wang Xiaolong said that short-sightedness in international relations often meant being “outpaced by events and longer term trends”.

“It hardly serves your best interests when you try to promote one significant relationship by damaging another”. 

This appears to be a reference to the India trip, which is part of New Zealand’s strategy to diversify its export markets and build closer ties with more Western-aligned countries.

In a speech at the Raisina Dialogue, Luxon referenced a recent incident in which China sailed three warships through the Tasman Sea. He said rules were giving way to power and the Indo-Pacific region was becoming increasingly contested and militarised. 

“Recent demonstrations of naval force near New Zealand’s maritime surrounds, for example, sent a signal that alarmed many of my fellow citizens,” he said. 

While China was rarely mentioned by name during the trip, many discussions about defence partnerships and securing the Indo-Pacific were implicitly about countering the superpower’s growing military strength.

Luxon also mentioned the militarisation of disputed reefs, dangerous air movements, and even land border incursions, which are all references to actions taken by China in the region.

Wang’s tweet came as Luxon concluded his trip with a visit to an Indian naval vessel and New Zealand’s HMNZS Te Kaha, which was involved in monitoring the Chinese warships in the Tasman Sea.

The frigate made a port call in Mumbai, as it traveled to join an anti-drug smuggling operation in the Middle East, where it hosted a networking event with the Indian navy.

Luxon has made an effort to show India’s government that New Zealand can be a credible and reliable defence partner. This is partly to overcome a perception in India that New Zealand is a “panda hugger”.

This willingness to broaden the NZ—India relationship has helped to pave the way for free trade deal negotiations but hasn’t gone unnoticed by China.

Luxon told reporters he didn’t think the trip had damaged New Zealand’s “longstanding and important” relationship with China. 

“We want to have relationships with many countries around the world, and we want to step up our engagement across the Indo-Pacific region,” he said.

“But no doubt about it, New Zealand and the Pacific is no longer in a benign environment, as you've seen evidenced by the circumnavigation of Australia and live firing by Chinese ships in the Tasman Sea”.