Luxon is expected to discuss the economy with Premier Li. The pair are also expected to raise issues of contention. Video / Mark Mitchell
Prime Minister Christopher Luxon said about half of his bilateral meeting with Premier Li Qiang on Thursday was spent in areas where the two countries disagreed.
Premier Li landed in New Zealand this week, spending Thursday in Wellington before heading to Auckland on Friday and Saturday for events designed to showcase and deepen trade ties. He is the second most senior figure in the Chinese system and the most high-ranking member of the Chinese Government to visit since the last Chinese Premier in 2017.
Trade, and marking the 10th anniversary of New Zealand’s Comprehensive Strategic Partnership with China were at the forefront of the trip. The pair oversaw the signing of a number of agreements improving market access to China. Luxon had flagged ahead of the meeting he would raise areas of disagreement constructively and predictably.
When asked whether the meeting was more about areas of shared interest or more about differences, Luxon responded, “probably 50-50″.
Areas that Luxon confirmed had been discussed include Aukus, which China sees as threatening, the Pacific, where China’s engagement has often been far from benign, and Chinese foreign interference.
Luxon said China raised its concerns about Aukus, while he noted the importance of using the Pacific Islands Forum as the key vehicle for finding solutions to Pacific challenges.
Luxon said he raised the 2021 cyber attack on the New Zealand Parliament, which New Zealand made the rare step of attributing to China, which denied involvement.
“We have no tolerance for foreign interference from any country,” Luxon said.
In a joint press conference, at which media were forbidden from asking questions, Premier Li said it was natural the two countries would not see “eye to eye” on everything.
Premier Li raised the prospect of China assisting New Zealand in infrastructure. The Government is keen to plug New Zealand’s infrastructure deficit and harness more private capital to build infrastructure.
It is also feeling the pinch after infrastructure projects National promised on the campaign have turned out to be far more expensive than the party’s costings.
China’s participation in infrastructure development briefly became a campaign issue, with questions around whether National would sign up to infrastructure deals under Chinese President Xi Jinping’s Belt and Road initiative. These deals have proved controversial overseas for failing to deliver quality infrastructure and often coming with strings attached.
Chinese Premier Li Qiang is escorted by Prime Minister Christopher Luxon and kaumatua Joe Harawira during his official welcome at Government House. Photo / Mark Mitchell
Luxon said he was “country agnostic” when it came to where infrastructure funding might come from. He laid out a series of criteria for assessing infrastructure partners which could be used to wave through or dismiss Chinese funding, depending on what the Government might want.
“It’s really important that any investor from any country is compliant with our regulations and can actually deliver commercially,” he said.
“Whether it is capital at home or capital from overseas, there is obviously a national interest test, there is obviously commercial process to go through,” Luxon said.
The pair also discussed the CPTPP trade deal which China is trying to join, although other CPTPP members are sceptical. At the moment, China’s statist economy fails to meet some of the tests that are required for CPTPP membership.
Luxon said “consensus” on the part of CPTPP members would be required were China to join. He said it was not New Zealand’s place to “lobby” for China to join.
The language Luxon used to describe China’s desire to join the CPTPP appears to have softened from the language used by Hipkins. In a joint statement issued during Hipkins’ visit to Beijing last year, New Zealand “welcomed” China’s desire to join. The joint statement issued for this year’s visit simply “noted” it, and said any attempt to join must satisfy the “Auckland principles” of readiness for a market to become a CPTPP member. It is questionable whether China could ever satisfy these principles.
Premier Li heads to Auckland on Friday for a business-focused agenda. He will also pay a courtesy call to Opposition leader Chris Hipkins. The pair met in Beijing last year when Hipkins was visiting as Prime Minister.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
