New Zealand leans towards pragmatism
- The country’s leader-elect, Christopher Luxon, does not see China as the bogeyman, setting the stage for improved ties that put business first
It may be early November before the final result of New Zealand’s election is known. But it will not affect a change of government or positive signs for the country’s relations with China, its biggest trading partner.
Ahead of the poll campaign, Prime Minister-elect Christopher Luxon said in reply to a question he would “absolutely” accept funds from China for a US$15 billion road infrastructure project.
He said a number of sovereign wealth funds had expressed interest in such projects, and he was open to Chinese cash pouring into them to ensure New Zealand had modern and reliable infrastructure.
However, in a reflection of the small part foreign policy played in the campaign, it was not until a few days before the election that Luxon, then opposition National Party leader, expounded on his approach to China.
Instead, the former head of Air New Zealand and top North American executive of multinational Unilever attacked governing Labour Party leader Chris Hipkins – who took over after Jacinda Ardern stepped down in January – on crime and the economy.
China’s focus on peaceful development in stark contrast to West’s outlook
The strategy won enough seats for National to govern with a coalition partner, or partners, when the final result is known.
Asked about China at a pre-poll news conference, Luxon indicated no change in bilateral relations, adding that both parties were aligned on foreign policy and stood up for national sovereignty.
“We raise our concerns with China when we need to in private, and publicly in a consistent manner. But we also have commercial relations with China and will continue to develop those, too.”
Luxon acknowledged that “geopolitics have changed, particularly in our region. It’s more contested … and we need to navigate it differently”.
New Zealand, long seen as a moderate voice on China’s growing presence in the South Pacific, has also signed a memorandum of understanding with Beijing on the Belt and Road Initiative.
Hipkins cemented ties when he met President Xi Jinping in June and backed Beijing’s bid to join a trans-Pacific free-trade partnership.
Under Labour, New Zealand had expressed concern about China’s increasing military strength in the region and alleged interference in domestic affairs. Observers are watching to see whether Luxon adopts a more pragmatic approach that puts business first.
