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As per the latest statistics by the National Bureau of Statistics of China, China’s GDP grew 18.3% YOY in Q1, reaching 24.93 trillion yuan. This comes after a 6.5% expansion in Q4 of 2020. China's first-quarter record success would boost growth in the country and support recovery in the US and the global financial outlook.
Furthermore, imports increased by 27.7% YOY in March, surpassing exports for the first time in 2021. This suggested a consolidated pattern for the revival of domestic demand.
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Liu Aihua, spokesperson of the NBS, stated that the 18.3% rise in Q1 was due to a comparatively smalller number base in the first 3 months of 2020, as well as an increase in workdays as a result of people missing returning home for the Spring Festival.
Battered with COVID-19 in the winter-spring season and international challenges, China strengthened and extended its accomplishments in handling the disease prevention and management, and returning to the path of social and economic development.
Let’s have a look at How NZ and China share their trading relationship.
NZ’s dependency on China
NZ’s trade with China has increased considerably over the past 15 years.
As per Stats NZ, NZ’s exports to China stood at $18.6 billion in the year to December 2020 while imports were $12.9 billion.
DO READ: Will NZ economic activity gather momentum in March quarter?
China is the largest trading partner of New Zealand and NZ has good relations with China. However, the Kiwi country plans to reduce its dependency on China. Nanaia Mahuta, Foreign Minister of NZ, stated that the long-term focus of trading partnership solely on one country was definitely not the best way to think about it.
NZ’s exports to China include dairy, forestry, seafood, wool, meat products and hides. While imports from China include manufactured products such as machinery and electrical goods.
GOOD READ: Will Trans-Tasman bubble give a respite to the NZ economy?
China is seen as an important part of the long-term economic growth plan and resilience, and in order to achieve that, diversity within the markets where NZ has an opportunity is needed.
Being dependent on a single economy, according to Mahuta, places NZ in a tough place.
NZ not happy with expanding Five Eyes partnership
Recently, Mahuta stated that NZ would not engage with China through the Five Eyes alliance. She expressed her resistance to broaden the reach of Five Eyes and rather stressed on seeking out ways to share concerns on a multi-lateral level.
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The Five Eyes Alliance is a group of 5 like-minded countries, the US, the UK, Australia, Canada, and NZ, who share security-related intelligence.
ALSO READ: New Zealand Not Happy About Five Eyes Alliance Growth
Mahuta’s statement came as frictions between the US, its allies, and China surged due to differences on several issues, including technology, trade, and Beijing’s actions in Hong Kong, Xinjiang, and the South China Sea.
