China trade needs more than milk
Earlier this week, NZ Herald reporter interviewed NZ China Council’s Executive Director, Pat English on his opinion of NZ’s trade relationship with China.
NZ China Council commissioned NZIER to do a study in the third quarter of this year to see how plausible it is that two way trade between NZ and China can reach NZ$30 billion by 2020, and if there are any gaps in the relationship that NZ can improve on.
The goal of reaching $30 billion by 2020 was set between the leaders of the two countries. The last goal which was $20 billion was fulfilled this year, a year ahead of its schedule.
The doubling in two-way trade – from $10 billion to $20 billion was mostly contributed to increase in export of dairy, meat and forestry products. To sustain growth, country’s export mix should become more diversified,
NZIER principal economist Shamubeel Eaqub said things could have got quite ugly for New Zealand if growth in exports to China had not been so strong over the past few years.
To read the full article, click here.