AU Tourism â now the Chinese are saying that AU âshould not expectâ tourism to return to what it was pre-Covid. Tourism had hit $12.bn for AU.
Chinese Students to AU â theyâve also suggested that students âmay not returnâ to AU. China accounts for 37% of Australiaâs $10 billion-a-year foreign university student market.
NZ Apples â theyâre carrying out an audit to ensure NZ safety standards comply while the meat industryâs $3bn meat and offal market to China prepares itself for similar treatment.
NZ Fish â this comes after the Chinese suspended trade with several NZ Fisheries they claim havenât complied with sanitary requirements.
NZFTA Agreement â was re-signed and updated in January which means business as usual (apparently) and will also mean that 99% of New Zealandâs nearly $3 billion wood and paper trade to China will have tariff-free access to China. No wonder NZâs literally out of wood domestically.
NZ and China
And while the FTA is great, itâs becoming more of a balancing act for NZ with Adern saying the differences between China and NZ are âbecoming harder to reconcileâ with NZ coming under pressure with NZâs Five Eyes partners â US, UK, AU and Canada putting pressure on to tow the line. British MP Bob Seely said Jacinda is âin a hell of an ethical messâ. Given China accounts for 29% of NZ exports it is a bit tricky.
Vicâs Belt and Road Agreement â the Chinese have labelled AUâs ripping this agreement to shreds âunreasonable and irrationalâ. AU says âyou started itâ the Chinese reply with âwhoever tied the knot is responsible for untying it.â All going no-where fast.
Bottom Line â notice that every product China blocks they consider replaceable, but not iron ore. Chinaâs the worldâs largest steel exporter and AU has the quality and volumes required by China â so that $80bn in trade rolls on. Everything else they can punish should they want to. AU and NZ are much more dependent on China than vice versa. So far NZ has walked the tightrope â so far.
Interestingly Chinaâs biggest customer by a mile at circa $520bn is the US.This too rolls on. Seems China picks and chooses according to what suits them but when theyâre the big boy and youâre the shrimp, itâs to be expected.
Source: AgriMarketing.co.nz