Tuesday, December 10
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Xi Jinping tells Luxon face-to-face that New Zealand should see China as a partner not a threat


Christopher Luxon and China President Xi Jinping.

NZ Prime Minister Christopher Luxon meets with China’s President, Xi Jinping in Lima.
Photo: Pool / Chris Skelton

Analysis – Consider China an ‘opportunity and partner rather than a challenge or threat’ – that was the message Xi Jinping delivered to Christopher Luxon at their face-to-face meeting, according to Chinese state-run media.

It’s an insight into how China is pitching itself to the Asia-Pacific region and beyond as threats of worldwide tariffs from the incoming Donald Trump Administration put small trade-dependent economies on edge.

While the prime minister said Trump’s promised tariffs weren’t specifically raised with him in any of his roughly a dozen bilaterals and pull-asides on the margins of the APEC Summit in Peru, he did say increasing protectionism and the breakdown of the rules-based system featured heavily.

Talking about those two things is a diplomatic way to raise concerns about the incoming US President.

Protectionism is precisely what Trump has been campaigning on – putting America first, which translated means putting every other country second.

Former US President and Republican presidential hopeful Donald Trump arrives for a

Photo: TANNEN MAURY / AFP

When one in four jobs in New Zealand depends on trade, a sizeable two-way partner shutting its door to products – unless a premium is paid – is a devastating proposition.

That’s why Luxon spent most of his whirlwind two days in Peru advocating for small exporting economies to band together to create more influence and power.

It’s also why he warned of power replacing rules, and arguing the trading institutions that have traditionally ensured order – like the World Trade Organisation – need to evolve and strengthen.

Further complicating the increasingly fragmented geopolitical environment countries are operating in is what exactly China plans to do in response.

For now, it is holding itself up as the champion of free trade – an interesting juxtaposition for New Zealand, a country that also proudly heralds itself as being a shining light when it comes to open trade.

Politically New Zealand and China have nothing in common, and for decades bilateral meeting talking points between the two nations’ leaders have split time between commonalities – trade – and differences – human rights abuses, missile testing, and aggression in the Pacific.

China’s issues and concerns with New Zealand are more often than not the reverse position of whatever alarming development was raised with it first.

On human rights abuses China disagrees, on missile testing it says it’s not a big deal, and on its aggression in the Pacific, it denies that’s the case.

In fact, it now views alliances, like those between Australia, the UK and the US, as responsible for the aggression.

At Luxon’s meeting with President Xi on Saturday China raised its concerns about New Zealand interest joining Pillar Two of the AUKUS pact.

In response, Luxon told media Sunday that he sees AUKUS as a positive for stability and security in the Asia-Pacific region.

It’s a complete unknown as to how Trump will approach AUKUS and whether its parameters or intentions might shift next year.

In the meantime, the position being taken by New Zealand on China is that, while it’s an opportunity and partner from a trade perspective, it remains a potential threat and challenge to the region.

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