Key heads to China for trade talks

Prime Minister John Key

By Laura McQuillan

Prime Minister John Key heads to China this weekend leading a large delegation, marking milestones in trade and diplomatic relations between the two countries.

Mr Key will be one of the first world leaders to meet with China's new head of state, President Xi Jinping, and Premier Li Keqiang, who both took office last month.

The visit marks five years since the two countries signed a free-trade agreement - the first such that China signed with any country - which has seen trade triple.

In 2012, New Zealand's exports were worth $6.8 billion, while two-way trade was worth $14.6 billion. The two countries have a goal of $20 billion of two-way trade by 2015.

The potential for further growth is massive as China urbanises and its population becomes more wealthy - and the Government wants the Chinese to spend that money on Kiwi products.

Mr Key will be focusing on three key export areas during his trip: trade, tourism and education.

His delegation includes representatives from primary produce exporters, like Fonterra, Synlait, ANZACO and Alliance Group, four tertiary education providers and an international high school, along with Air New Zealand, Auckland and Christchurch airports and visitor attractions promoters.

Education is New Zealand's biggest market, with more than 24,000 Chinese studying in New Zealand, while tourism is growing rapidly, bringing in nearly 200,000 Chinese visitors in 2012.

Mr Key flies ahead of the delegation to the Boao Forum for leaders in government, business and academia. Australian Prime Minister Julia Gillard, and presidents from Mexico, Peru, Zambia, Kazakhstan, Algeria and Finland, along with business leaders including Bill Gates and George Soros, university and media bosses, and Nobel laureates are among attendees.

It's at the forum that Mr Key will have talks with President Xi - a meeting that also marks 40 years of diplomatic ties between the two countries.

Historically close ties were halted after 1949, when the People's Republic of China (PRC) was formed, until New Zealand formally recognised the PRC in 1972 - at the expense of diplomatic ties with Taiwan.

After the forum, Mr Key flies on to Guangzhou to meet the rest of the delegation, and then to Shanghai and Beijing for face-to-face meetings - the key to doing trade in Asia.

In all three cities, Mr Key will meet senior leaders and attend events to promote New Zealand and support Kiwi businesses operating in China.

He'll open the NZ-China Partnership Forum in Beijing, where he will also address students at Peking University.

He is expected to conclude a series of trade-related agreements with Premier Li at a meeting on Wednesday, where the two may also discuss issues like regional defence, following heightened tensions between North and South Korea, China's human rights, and New Zealand's food safety, after Fonterra kept a milk contamination scandal under wraps for months.

Maori Affairs Minister Pita Sharples, several iwi and a kapa haka group will also be a part of the delegation, and in Beijing, the group will formally receive a Maori feather cloak, which was given to Chairman Mao Zedong in 1957.

The cloak will be temporarily loaned to Te Papa for display later this year.

Mr Key and the delegation will return to New Zealand on April 13.

NZN