AU Tourism – now the Chinese are saying that AU “should not expect” tourism to return to what it was pre-Covid. Tourism had hit $12.bn for AU.
Chinese Students to AU – they’ve also suggested that students “may not return” to AU. China accounts for 37% of Australia’s $10 billion-a-year foreign university student market.
NZ Apples – they’re carrying out an audit to ensure NZ safety standards comply while the meat industry’s $3bn meat and offal market to China prepares itself for similar treatment.
NZ Fish – this comes after the Chinese suspended trade with several NZ Fisheries they claim haven’t complied with sanitary requirements.
NZFTA Agreement – was re-signed and updated in January which means business as usual (apparently) and will also mean that 99% of New Zealand’s nearly $3 billion wood and paper trade to China will have tariff-free access to China. No wonder NZ’s literally out of wood domestically.
NZ and China
And while the FTA is great, it’s becoming more of a balancing act for NZ with Adern saying the differences between China and NZ are “becoming harder to reconcile” with NZ coming under pressure with NZ’s Five Eyes partners – US, UK, AU and Canada putting pressure on to tow the line. British MP Bob Seely said Jacinda is “in a hell of an ethical mess”. Given China accounts for 29% of NZ exports it is a bit tricky.
Vic’s Belt and Road Agreement – the Chinese have labelled AU’s ripping this agreement to shreds “unreasonable and irrational”. AU says “you started it” the Chinese reply with “whoever tied the knot is responsible for untying it.” All going no-where fast.
Bottom Line – notice that every product China blocks they consider replaceable, but not iron ore. China’s the world’s largest steel exporter and AU has the quality and volumes required by China – so that $80bn in trade rolls on. Everything else they can punish should they want to. AU and NZ are much more dependent on China than vice versa. So far NZ has walked the tightrope – so far.
Interestingly China’s biggest customer by a mile at circa $520bn is the US.This too rolls on. Seems China picks and chooses according to what suits them but when they’re the big boy and you’re the shrimp, it’s to be expected.