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China moves to drive a wedge between Australia and New Zealand by shifting its agricultural trade purchases away from Australia as punishment for its alignment with the US

China moves to drive a wedge between Australia and New Zealand by shifting its agricultural trade purchases away from Australia as punishment for its alignment with the US
Residents in Hainan buy Australian beef on Monday. Photo: CNSphoto

The following is an [unauthorised] repost of an article in the official Chinese nationalistic tabloid yesterday, Global Times. It is reposted here so readers get a sense of how China is planning to punish Australia for its alignment with the US with its policies toward China.


By Chi Jingyi and Li Xuanmin Source: Global Times Published: 2020/7/27 22:33:40

Graphics: GT

There have been calls in China to boycott Australian products in response to Australia's ongoing anti-China campaign. If the boycott intensifies further, Chinese importers may consider alternative sources, for example, Australia's neighbor New Zealand, said analysts, industry practitioners and enterprises. 

Australia, which had exports of meat to China worth $1.36 billion in the first six months of 2020, lost its market share to global competitors, including Brazil, the US and neighboring New Zealand, which exported $1.14 billion of meat to China, showed statistics from the General Administration of Customs.

Since China suspended in May four Australian beef producers from exporting to China, some Chinese importers are making plans.

An importer of Australia beef and mutton based in Shanghai, which has imported nearly 300 tons of meat in 2019, told the Global Times on Sunday that it has started looking for exporters outside Australia from the end of last year as the soured bilateral relationship makes importers feel unsafe.

The importer said it has contacted exporters from Brazil and New Zealand and the signing of import contracts is under discussion, though it is impeded by the coronavirus.

"If the tension between China and Australia continues to escalate, Australia will lose a large share of its China market, as the country has started to diversify where it sources agricultural products from," Hu Qimu, a senior fellow at the Sinosteel Economic Research Institute, told the Global Times on Monday.

Hu noted that China has increased agricultural imports from the US under the two countries' phase one trade deal, which has squeezed some of Australia's market share.

China slapped a heavy antidumping tariff in May on Australian exporters of barley for five years.

As one of Australia's biggest barley importers, China accounted for nearly 50 percent of its exports.

Some Chinese consumers' boycott against Australian agricultural products is poised to benefit New Zealand, whose geographic and weather conditions are similar to that of Australia and therefore have a certain level of overlaps with its neighbor in terms of main export products, Wang Jiazheng, chief representative of the Guangdong Economic and Trade Representative Office in New Zealand (GETRONZ), told the Global Times on Monday.

An agricultural analyst surnamed Ma also said that products of the two neighbors are highly substitutable due to similar geographical location and climate.

"New Zealand cannot take all of Australia's share in China as global competitors are eyeing the Chinese market, but it will definitely take some share," Ma told the Global Times on Sunday.

China imported $2.27 billion worth of dairy products, eggs and honey from New Zealand in the first half of the year, while imports of the same products from Australia totaled $259.2 million, according to Chinese customs.

New Zealand has two things that Australia does not: mountains and rain, making its strengths lie in livestock, forestry and orchards, Long Hao, director of the New Zealand-listed AFC Group Holding whose business includes agricultural trade, told the Global Times on Sunday.

"AFC Group's total exports of dairy, honey, wine and facial masks for the first five months of 2020 increased by almost 25 percent year-on-year, with the largest increase in facial masks, despite an overall decline due to the coronavirus," Long said.

Addressing the China Business Summit on July 20 in Auckland, New Zealand Prime Minister Jacinda Ardern said that "China is New Zealand's largest trading partner and one of our most important relationships."

China has noted relevant reports and appreciate the remarks which show that the New Zealand government attaches importance to developing relations with China. Sound and steady development of bilateral relations serves the fundamental interests of both countries and peoples, said Wang Wenbin, spokesperson of the Foreign Ministry on July 21.

The chief representative of GETRONZ also said that New Zealand has been building close political and economic relations with China, so it is vital that the two economies maintain such ties amid fraying China-Australia relations.

Trade between China and New Zealand reached $18.29 billion in 2019, up 8.5 percent from a year earlier, according to Chinese customs.

According to data sent by Wang Jiazheng, China accounts for one third of New Zealand's dairy product exports in pre-coronavirus period. In 2019, a total of 23 percent New Zealand's exports went to China, while China also represents 16 percent of New Zealand's imports.

China is now New Zealand's largest trading partner, and the second-largest and fastest growing tourism market, largest source of international students, and a significant source of foreign investment, according to a statement by the New Zealand Ministry Foreign Affairs and Trade in November 2019.

Under the situation of closer ties between China and New Zealand and with an upgraded free trade agreement as well as tension between China and Australia, New Zealand's agricultural exports to China will increase by a large margin, Wang Jiazheng said.


The original article is here.

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33 Comments

34
up

This would take us out of alignment with Aus + increase our dependency on CCP.. I'm not sure it's the right path to go down.

it is a natural path and should not be evaluated by a simple concept of good or bad.

How will this affect Fonterra's exports from Australia to China. Will they also be banned?

Realpolitik. Ardern and Peters have done a good job of treading a fine line.

Peters stepped over that line today with his comments about Hong Kong. Is he really losing it. Adern should step in and say no more policy statements - stick to electioneering. I wiĺl be glad to see him and his gang leave the building.
Collins is praising his stance today, there is obvious pressure from the Five Eyes pact which is fine to agree to in principle but is catastrophic in regards to trade for Australia and New Zealand with China. I understand there is security breaches in the Australia and USA.
Where is the fine line.

Any ban will be at the company level.

The information on which company's CEOs in the AUS are pro or anti-China through its political system is well understood.

16
up

This is a bullshit comment.

As is yours

10
up

You can’t address climate change and sustainable development, without addressing what the CCP is doing to the planet...
https://www.theguardian.com/environment/2020/jul/27/chinese-fishing-vess...

Let's make China dependant on us

Sounds like a horse powered wagon tries to tow a cruise ship.

Xingmowang I reckon that Deng Xiaoping saw what the danger for China was going to be if president Xi or any other leader decided to become a depot/dictator.
Xi is really overdoing it with the hand of cards he's been given by the West.
I can't think of any completely independent country that is not looking at China with suspicions and mistrust.
Time for Xi to concentrate on the well-being of China's citizens rather than being a bully.

Anyway do read the words of Deng Xiaoping and let me know what your thoughts are.
Remember you ate allowed to have free thoughts and expressions in NZ.

The time has come - Deng Xiaoping
https://www.reddit.com/r/ChinaWatchNZ/comments/gnvu57/the_time_has_come/

The Diamond Princess I assume?

Not sure if anyone heard of that the concept of economic internal circulation is now a hot topic in China.

This is to prepare for a stage when China were cut off from the SWIFT system.

If this day happened, decision makers need to ponder how NZ would trade with China.

BTC/CNY or BTC/NZD?

How those floods looking Xing? Mass starvation on the cards for china?

Well someone of a certain type will cotton on to this soon enough , and Aussie meat will be re-routed through Auckland harbour as Kiwi beef and lamb .

Thats exactly what Chinese firms do with milk products already, they buy them in south America, ship them to Invercargill where they package it and label it as a NZ product which they then export to China. Absolute bullshit

I think somone is winding you up mate. Any product shipped/labelled as made in NZ must be approved by Chinese inspectors and our FSA as well as Customs and MBIE and registered as such

Im all for seizing the opportunity and selling as many products to them and extracting as much money out of China as possible in the short term, but I agree with Loveyourwork. I am fundamentally opposed to their system as a whole so would see it as a short term opportunity that we would not want to become reliant on.

12
up

"Australia's ongoing anti-China campaign..."
What about China's anti world campaign?
This article is trying to convince Oz that they need China and is also trying to drive a wedge between Oz and NZ. It is very transparent in this aim. I think Oz should cut back on iron ore exports to China in retaliation. To show just how much China needs Oz.
In my view this propaganda should not be published here.

Maybe you should read the header at the top of the article

China is throwing its weight around & if I were them, why not. When they look across the Pacific Ocean & see the USA in civil & political turmoil, now looks a good a time as any. They will not succeed of course, [ awful casual racism deleted. Never again, last warning. Ed ] That, however, won't stop them physically advancing their new found imperialist & nationalistic causes. But all that will probably do is strengthen the global opposition they will encounter. As Trump's learning, it does pay to be nice to your neighbours & those you wish to do business with.

The kids I teach English to know about NZ milk. One kid told me the best milk comes from Inner Mongolia. Interesting.

Isn't the newish dairy factory in Pokeno (not the unconsented Synlait one) owned by Yilli Inner Mongolia Dairy?

It's Yashilli, not Yili. ;-) Danone (French) owns up to 65% of the Pokeno plant. Yili bought Westland and own the ex Oceania factory at Glenavy.
https://www.rnz.co.nz/news/business/391314/danone-wins-oio-approval-to-b...

Inner Mongolia, lol, that's a Chinese euphemism for annexed mongolia

Yeah, I find the CCP scary, but I disagree with the "horrible little people" comment. The people from China I have met are just trying to work and make a living like the rest of us and don't deserve to be judged by their govt.

If Deng Xiaoping or his henchman come anywhere near me I'll be giving them a good hard wedgie.

Xi, and current CCP leadership, are making a strategic mistake. Antagonising almost everyone.

NZ tied to China though trade-wise. We diversified away from Europe/USA for a good reason. They make/grow what we make and are protectionist.

The good reason was, when the UK joined the EU, NZ and Australia were left high and dry. The EU had NO interest in NZ or Australia. To the UKs credit, they did support us and did managed after a while to get the NZ and Australia better terms with the EU, it was better than nothing. They were NZs only friend at that time. Older kiwis particularly farmers remember this and will not forget how bad it was. NZ needs other trading partners, USA,Asia, middle east, South America, Also it would be good if NZ can get a FTA with Russian federation when the Ukraine problem is sorted.

China will never change their mind on Hong Kong, never.Look at history, They donot want this unrest to spread to other cities in China. Winston and the other western countries will not change China mind.Power and prestige are very important to them, also they will not lose face.

No matter how we look at things, we are going to end up being more dependent on China. This is because of the huge power that they have in so many industries. At a global scale, people try to stop imports from China. This made China fight back and it is a normal way to see things. At Rocket Freight International, which is where I work, I am a shipping manager, we saw an increase in demand in import from China in the past 12 months. This has been while noticing a decline in imports from Australia. We will surely end up importing more from China in the near future.

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Days to the General Election: 38
See Party Policies here. Party Lists here.