New Zealand aims to attract Chinese tourists and students
This marks Luxon's first trip to China since taking office in November 2023. He began in Shanghai before traveling to Beijing, where, as his office announced, he is scheduled to meet with President Xi Jinping and Premier Li Qiang on June 20.
"It's all part of our strategy to boost our economy—creating more jobs, increasing wages, and ensuring more money is in your pocket," Luxon shared on Instagram as he departed.
This visit occurs against the backdrop of rising Chinese influence in the Pacific, which has raised concerns among many Western countries, whose previous more substantial security presence is being tested.
"There are numerous issues and challenges in the relationship," noted Jason Young, director of the New Zealand Contemporary China Research Centre at Victoria University, who mentioned that both nations recognize their significant mutual interests.
In February, New Zealand expressed worries when the Cook Islands, under its constitutional umbrella, signed several agreements with China regarding cooperation in areas such as economy, infrastructure, and seabed mining without prior consultation.
Additionally, Young added that the presence of a Chinese People's Liberation Army Navy task force in the Tasman Sea and other Chinese activities in the Pacific present further obstacles to the relationship.
Despite these challenges, trade and travel represent less contentious areas between the two nations. New Zealand was the first developed country to establish a free trade agreement with China in 2008, exporting significant amounts of dairy, meat, and wood products. The tourism and educational sectors are also substantial.
According to the foreign ministry, New Zealand's exports to China in 2024 reached NZ$20.85 billion (US$12.64 billion), comprising NZ$17.75 billion in goods and NZ$3.1 billion in services. Chinese tourists make up the third-largest group of international visitors to New Zealand, although their numbers remain almost 20 percent lower than in 2019, prior to the COVID-19 pandemic.
Over the weekend, New Zealand announced it would introduce a 12-month trial of visa waivers for Chinese passport holders arriving from Australia with valid visas starting in November. This move reciprocates China's policy of offering visa-free entry to New Zealanders implemented last year.
Luxon has referred to China as "an essential part" of his country's economic narrative and indicated that discussions during his four-day visit will touch on security and defense matters. He has noted the importance of engaging with China on significant issues, given the challenging global landscape.
Previously, leaders from both countries met during November's APEC summit in Peru, and Li visited New Zealand in June 2022. Historically, Wellington has adopted a more accommodating stance towards China compared to Australia and its fellow members of the Five Eyes security alliance.
However, in recent years, it has become more assertive on topics such as human rights, international law, and potential militarization in the Pacific. In June 2023, former Prime Minister Chris Hipkins visited Beijing ahead of Luxon's trip.
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