Walking a tightrope: New Zealand revises its China Policy

Abstract

A number of countries have recently revised their approaches to dealing with a more assertive China. How to recalibrate relations with China is also a main - if not the central - foreign policy challenge for New Zealand, where a centre-left government took office in 2017. The government's more sober approach to dealing with China has, among other things, been reflected in defence policy, a push to strengthen ties with the South Pacific, foreign direct investment regulations, and an initial ban on Huawei rolling out 5G broadband technology in New Zealand. New Zealand's ties with China had blossomed in the past 15 years. A free trade agreement, burgeoning bilateral exchanges, and a comprehensive strategic partnership were testament to warm relations. China's assertiveness in the South China Sea, its increasing presence in the South Pacific, and concerns about its inference in other countries' domestic politics have, however, put a damper on the relationship. In 2018 the government in Wellington announced a number of steps which, collectively, could be understood as a major reset of relations with China - not unlike the prior reset of Australia's own China policy. However, concerns that the bilateral relationship was spiralling out of control have led in 2019 to fence-mending activities. China-New Zealand relations are unlikely to regain their earlier shine. China itself has begun to differentiate more between Australia and New Zealand, also reflecting an apparent attempt to drive a wedge between the two. Despite their limited resources and vulnerability, small powers like New Zealand do not lack agency. The government in Wellington should work with partners in Asia on the same wavelength to help advance regional agendas, including but certainly not limited to trade issues, and to ward off attempts at divide and rule. It should also work intensively with like-minded and willing partners in the European Union and elsewhere to address pressing global issues, including climate change adaptation and reforming multilateralism.