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China’s No. 2 is on a six-day visit to the region, the first by a Chinese official of this level since 2017. The trip will take him to five cities for meetings with economic policymakers and discussions with his New Zealand counterpart Christopher Luxon and his Australian counterpart Anthony Albanese.
Beijing’s major trading partners, Australia and New Zealand, are concerned about China’s growing influence in the South Pacific.
“It is natural that we do not always agree on all issues,” Li told reporters after meeting with New Zealand’s prime minister. “But these differences of opinion must not become a chasm that hinders our exchanges and cooperation.”
Before the meeting, Li Keqiang stressed his hope to renew “traditional friendship” with New Zealand and promised to provide opportunities in business, tourism and investment.
Mr Luxon said he highlighted sensitive issues during the discussion, including rising tensions in the South China Sea: “I discussed with Prime Minister Lee a number of issues that are important to New Zealanders and touch on our fundamental values, including human rights and foreign interference.”
China is New Zealand’s largest trading partner, importing New Zealand meat, wine and milk.
While New Zealand has long been one of Beijing’s closest partners among Western democracies, relations have become strained in recent years as China seeks to expand its military and diplomatic presence in the Pacific.
– ‘Don’t put everything at risk’ –
New Zealand’s new government has strengthened its ties with Australia and the United States. It also plans to join the Ocus military alliance between Washington, Canberra and London, which is seen as unfavorable by China.
Geoffrey Miller, a geopolitical analyst at Victoria University of Wellington, said Li’s trip boiled down to one clear message: “Don’t put everything at risk.”
New Zealand Foreign Minister Winston Peters in May criticised China’s desire to increase its security presence in the Pacific islands, warning against actions that could “destabilise” or undermine regional security.
For Miller, the Chinese premier could use trade advantages to appease New Zealand and show Wellington “what it might lose” by joining the Ocus alliance.
“China knows a final decision has not been made, so it has an opportunity to make New Zealand aware of the significance of the decision,” Mr Miller said.
– Victims –
Li will continue his visit to Australia on Saturday. The visit follows visits by several senior Chinese officials in recent months, including a visit by Chinese Foreign Minister Wang Yi in early 2024.
Beijing has also previously removed most trade barriers on Australian exports, including coal, timber, barley and wine.
China and Australia have been at loggerheads in recent years, particularly since Australia’s call for an inquiry into the origins of the Covid-19 pandemic in 2020, which Beijing considers political, and Canberra’s decision to exclude equipment maker Huawei from its 5G network.
China subsequently raised taxes on many Australian products, particularly wine, beef and barley. Most of these surcharges were scrapped as relations between Beijing and Canberra warmed after Labor came to power.
However, tensions remain on defense, with Australia favoring a close alliance with the United States in the Pacific. After Beijing signed a secret security agreement with the Solomon Islands in 2022, Canberra and Washington are working to strengthen ties with the island nations.
The Pacific islands are sparsely populated but rich in natural resources, and their strategic position could be crucial in the event of a military conflict over Taiwan.
China has harshly criticized the Ocus security agreement, which includes in particular the delivery of nuclear-powered submarines to Canberra. Beijing sees it as a threat to its security and a violation of nuclear non-proliferation rules.
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