A large crowd gathered outside the Wellington Hotel ahead of the Chinese Premier’s arrival

Premier Li Qiang arrived in New Zealand today, the first visit by a Chinese premier since 2017.

His visit will be hosted by British Prime Minister Christopher Luxon, who will focus on any opportunities to develop trade while balancing the relationship between the two countries in an increasingly unstable global environment.

About 200 people gathered outside a hotel in central Wellington, holding flags and banners in support of the visit.

Zhu Hai, a retired geophysicist, said the visit marked the two countries’ escape from the pandemic and restoration of good relations.

“This is a big deal for both countries.

“It basically maintains the connection between the government and the people.”

China’s free trade agreement with New Zealand underpins what Luxon described as an “important, complex and resilient” bilateral relationship.

The Prime Minister’s visit will include a welcoming ceremony, bilateral talks, a formal dinner and a series of events in Auckland and Wellington.

The visit will also mark the 10th anniversary of the New Zealand-China Comprehensive Strategic Partnership, with both sides agreeing to cooperate wherever possible while recognising their different political systems and cultural traditions.

Luxon said New Zealand should cooperate with China where there are common interests.

He also said that there is room for further expansion of relations between the two countries, especially in “areas such as trade, energy, climate” and “people-to-people exchanges.”

“We have our differences and our disagreements, that’s a given, and if we have those differences and our disagreements, we shouldn’t be afraid to talk about them.”

He described it as a “50-year long relationship – we have been predictably and consistently raising our concerns and our differences”.

The New Zealand-China Free Trade Agreement, signed in 2008, is New Zealand’s largest trade agreement since the Closer Economic Relations Agreement was signed with Australia in the 1980s.

Recently, the policy has been upgraded, allowing some New Zealand goods to enter the Chinese market more quickly and tariffs on some products have been reduced.

Trade liberalization is a priority for the government

Trade Minister Todd McRae made it clear that opening up trade with China is a top priority for the Coalition Government.

He has visited China, the first time this government has sent a minister there, to hold talks with his counterparts in the Chinese commerce, agriculture and forestry departments.

“We think there is an opportunity to upgrade the free trade agreement around services to help New Zealand exporters access the Chinese market.”

Luxon hopes trade with China will grow to help meet the government’s goal of doubling New Zealand’s exports over the next decade.

“We look at China and we say: 1.4 billion people, a rapidly rising middle class; yes, it’s had some economic headwinds as it dealt with some challenges, but at the end of the day, there are still a large number of consumers who are very discerning and open to New Zealand products and services.”

The prime minister is China’s second-highest-ranking official and the last person to visit the country was former premier Li Keqiang in 2017.

Former Foreign Minister Nanaia Mahuta visited China last year, the first visit by leaders of both countries since face-to-face exchanges were suspended in the early days of the coronavirus pandemic.

Former Prime Minister Chris Hipkins also visited the country last year, six months after taking office.

Li Keqiang is also set to visit Australia this week, where relations with China have been strained in recent years.

‘We have differences’

New Zealand is considering the possibility of joining the second pillar of the AUKUS security agreement, which would be another point of friction.

Just last month, China’s ambassador to New Zealand warned that Seen as “taking sides”.

The prime minister acknowledged that the issue would be discussed in his conversation with Li Keqiang this week.

“We think AUKUS is good from a security perspective and provides security for the Indo-Pacific region. We think it is entirely appropriate for New Zealand to explore potential options under Pillar 2 and decide whether to participate,” Luxon said.

Last week he visited Niue and Fiji to discuss New Zealand’s role in the growing geostrategic competition in the Indo-Pacific region.

Asked which powers he was referring to, and whether he was specifically referring to China, Luxon said there were “many major powers doing more activity in the region”.

He denied that he was afraid to say the word “China”, saying: “No, no, as I said, the geostrategic competition is more intense, whether it is China, the United States, or other major powers.”

Luxon said he would “raise all the differences we have,” such as China’s human rights record.

“We have our differences. We raise those differences very predictably and very consistently, both publicly, as you saw recently on the cyber issue, and privately.”

He said he very much hopes to visit China, possibly early next year.

This year marks the 10th anniversary of President Xi Jinping’s visit to New Zealand.