China No Longer Just A Commodity Story - Luxon
China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.
The two countries and businesses have a consensus that investment is beneficial – a win-win situation, he told a Chinese Business Summit in Auckland this week, in answer to questions.
He says Chinese investors are happy with the conditions here, but are looking for that consistent message.
Earlier Lutong said the Chinese economy is undergoing a major transformation from an economy sustained by exports and investment to an economy powered by consumption and innovation.
"The speed of growth is shifting from high to medium-high. The speed might be medium-high to China but is still very high to the rest of the world.
"We are also rebalancing the economy away from heavy industries to the services and reducing state intervention to encourage the market to play a more decisive role.
"Innovation is highlighted as the driving force for China's economic reforms and growth goals."
He said reforms will be deepened and new growth released from entrepreneurship, innovation and creativity. One example is that internet will be better integrated with traditional industries.
He said commodities trade will remain a core strength of two way trade between NZ and China. But there will be growing and new opportunities for NZ which is also very creative, competitive, open and globally orientated.
"We have a fundamental stake in each others' success," he said.
He said there are tremendous business opportunities out there but contracts are not all about business. "We need to reach out, enhance understandings and forge relationships that will go on for many years.
"Sometimes we have to give before we take. We have to give sincerity and thoughtfulness; sometimes we have to show even more trust and respect. Sometimes we have to observe and reflect instead of react. Sometimes we have to change and adapt in order to stay relevant to the changes of China.
"China's change will be New Zealanders' moment. I encourage you to keep up the fine work you have been doing and I am confident New Zealand is perfectly placed to seize that moment."
