B&R memorandum opens up new prospects for China-New Zealand cooperation

The Memorandum of Arrangement on Strengthening Cooperation on the Belt and Road Initiative between the Government of the People’s Republic of China and the Government of New Zealand (the memorandum) was signed in Wellington on March 27 under the witness of Chinese Premier Li Keqiang and New Zealand Prime Minister Bill English.

Also signed on the same day were eight cooperation agreements on trade, agriculture, e-commerce, education, intellectual property protection and environmental protection.

The memorandum is the first of its kind between China and a country in the South Pacific, as well as an important consensus of the two countries on building the Belt and Road Initiative and an outcome of deepening pragmatic bilateral cooperation.

This year marks the 45th anniversary of the two countries establishing diplomatic relations. As a natural extension of the 21st Century Maritime Silk Road, New Zealand’s participation in the initiative is conducive to deepening mutual understanding, inter-connectivity and mutual beneficial cooperation, so as to maintain friendly ties between the two countries and the two peoples and promote regional peace, development and common prosperity.

According to the memorandum, the two sides will strengthen cooperation and exchanges to support the Belt and Road Initiative, in a bid to achieve the goal of common development. The two sides will carry out senior-level dialogue and promote communication on each other’s major development strategies, plans and policies on a regular basis, strengthen communication and cooperation on each other’s major macro policies and promote the connection and integration of major development strategies, plans and policies of the two countries. 

In the field of bilateral cooperation, the two countries will upgrade and modernize the China-New Zealand Free Trade Agreement (2008), strengthen mutual investment and discuss approaches to advance substantial mutually beneficial cooperation. The two countries will also actively conduct mutually beneficial cooperation in fields including infrastructure, manufacturing, agricultural technologies, information technology, clean energy, regulatory harmonization, public financial management and trade facilitation.

Efforts will be enhanced to push forward economic and trade cooperation, including fulfilling the goal of increasing bilateral trade volumes to NZ$30 billion (US$21 billion) by 2020 as agreed by leaders of the two states.

The memorandum also proposes to deepen bilateral friendly cooperation in the fields of education, tourism, local government, youth and the screen sector, based on the unique advantages provided by the Film and Television Programmes Co-Production Agreements. The two sides will advance cultural exchanges and mutual learning and create a new situation in cultural exchanges.

New Zealand was the first Western developed country to recognize China's full market-economy status, to sign and implement a bilateral free trade agreement with China and to join China-initiated Asian Infrastructure Investment Bank as a founding member.

In 2016, bilateral trade exceeded NZ$20 billion, up nearly 5 percent year-on-year. China has been the largest source of foreign students to New Zealand for more than 10 years and more than 400,000 Chinese tourists visited New Zealand in 2016.

New Zealand Ambassador John Mckinnon told Xinhua News Agency in a recent interview that the Belt and Road Initiative connects the countries along the route together, economically and culturally. These countries can share their resources. As an important partner of New Zealand, China’s development benefits New Zealand as well.

Wang Yiwei, a professor of international relations from Renmin University of China, said in a recent interview with Shanghai-based Jiefang Daily: “New Zealand’s participation into the initiative sends a positive signal to the world. The two countries have huge cooperation potential in maritime ecological environment preservation, climate change, seaway safety, as well as other non-traditional security domains.”

Wang noted, “The two countries can set a good example in cooperation on economic development zones and port construction. More importantly, the two countries can have a lot to do in promoting free trade, investment facilitation and taking a lead in making new international trade and investment rules.”

Full text:

Memorandum of Arrangement on Strengthening Cooperation on the Belt and Road Initiative between the Government of the People’s Republic of China and the Government of New Zealand

Chinese version:

《中华人民共和国政府和新西兰政府关于加强“一带一路”倡议合作的安排备忘录》

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