Chinese-New Zealand relations looking strong

Following his trip to Australia, the People's Republic of China's president Xi Jinping stopped over in New Zealand. During his time there, discussions were had on trade and investment between the People's Republic of China and New Zealand. The state visit went from 19 to 21 November, and was the Xi Jinping's third visit to the country, but his first as president, according to the New Zealand government.

Prime Minister John Key welcomed the president and first lady Madame Peng to the country and acknowledged the two countries' significant trade relationship.

"Our relationship with China has never been in better shape. China is now New Zealand's largest trading partner and we have strong links in a number of areas including business, tourism and education," said Mr Key.

During the diplomatic sojourn both the president and prime minister agreed to some new terms of trade that would benefit both countries - a total of ten new agreements and arrangements were made, according to the New Zealand government.

Areas in which the two governments reached agreement include:

• television co-production
• working holiday visas for Chinese people working in New Zealand for up to six months
• mutual academic qualification recognition
• food supervision and traceability
• tourism
• a partnership involving the commerce of foodstuffs and native produce
• Antarctic cooperation
• climate change cooperation

What is China's role in New Zealand?

China is a significant trade partner and a source of investment, tourism and immigration for New Zealand.

According to New Zealand Trade and Enterprise and Statistics New Zealand, at the end of the 2013 calendar year, the People's Republic of China was one of the top ten holders of foreign direct investment stock in New Zealand, with a total holding of NZ$859million.

As far as New Zealand's exports go, China is the chief consumer of New Zealand made products overseas, trading NZ$9,965million in the 12 months to 31 December 2013, up from NZ$6,859million in 2012.

As the People's Bank of China attempts to expand the presence of the Chinese currency overseas by promoting international investment by domestic entities, it can be expected that New Zealand and Australia will remain popular investment destinations. New Zealand should experience increased inflows of the renminbi as local businesses and real estate become increasingly interesting to overseas buyers.

Ray White is particularly well positioned to aid in the burgeoning market for Australian and New Zealand real estate. Not only does the group have over a hundred years of experience in the local property market, but also has offices in Beijing and Hong Kong.

"A team of commercial specialists from our Sydney and Brisbane offices undertook a trip to China to visit our clients that are active in Australian and New Zealand markets. Supported by our Beijing office, they came back with even more requirements for investment opportunities; seemingly an ever-increasing appetite," said Brian White, joint chairman of the Ray White Group in his November White Paper.