Front page news

It’s not unusual for Prime Minister John Key to be front page news in New Zealand.

It is something of an accomplishment, and an honour, to be front page news in China, a country with a population of 1.3 billion.
Making front page news in China – not bad in a country with 1.3 billion people

The Prime Minister also had a dinner with President Xi Jinping and the visit has helped strengthen links between our countries:

Prime Minister John Key says agreements entered into with China at his meeting with Premier Li Keqiang highlight the continuing strength of the relationship between our two countries.

Mr Key and Premier Li Keqiang met at the Great Hall of the People. Mr Key’s visit to China marks the third time the countries’ top leaders have met in less than 12 months.

The meeting emphasised the value both countries place on the political, trade and economic relationship which, has continued to grow rapidly.

New Zealand and China are well on track to achieve a shared goal, agreed by the Prime Minister and Premier Wen Jiabao in 2010, to double two-way trade to NZ$20 billion by 2015. Two-way trade is currently worth over $18 billion.

“My meeting highlighted the mutually beneficial nature of the bilateral trade, with China becoming our number one goods export market, and remaining the number one source of imports for New Zealand,” says Mr Key.

The Prime Minister said that he was pleased to see the particularly strong growth in dairy exports to China, which reached nearly NZ$5 billion in 2013, an increase of 75 percent.

“My meeting provided the opportunity to brief Premier Li on the outcomes of the Whey Protein Concentrate Contamination Incident Government Inquiries, emphasising that they underline that New Zealand is a producer of high quality food, with world class regulatory systems,” says Mr Key.

The Prime Minister and Premier Li discussed New Zealand and China’s shared interest in strengthening financial sector cooperation, as well as cooperation in the areas of agriculture and food safety.

Six new initiatives have been agreed at the meeting, including:

  • The launch of direct trading of the New Zealand dollar against the Chinese Renminbi.
  • Agreement to renegotiate the 1986 Double Tax Agreement.
  • Implementation of an electronic equipment Mutual Recognition Agreement that will enable New Zealand to become the first country in the world to test, inspect and certify electrical products outside of China.
  • Enhanced agricultural cooperation in dairy herd improvement, agricultural management, veterinary training scholarships and professional development exchanges.
  • Improved food safety cooperation including the launch of a scholarship programme in food safety and risk management.

“The financial sector offers great potential for further cooperation between New Zealand and China. Today’s announcements will make doing business with China easier by reducing compliance costs and contribute to the wider expansion of the economic and financial cooperation between the two countries,” says Mr Key. . .

This visit and a stronger relationship will bring benefits to New Zealand:

China is important to New Zealand. We are on track to achieve the goal of doubling two-way trade to $20 billion by 2015. This week President Xi Jinping and I set an ambitious new goal for trade to reach $30 billion by 2020.

Our growing trade with China is a shot in the arm for New Zealand exporters and industry. It is one of several reasons the New Zealand economy continues to grow strongly.

Figures released today showed GDP increasing by more than 3 per cent in the past year – making New Zealand one of the fastest growing economies in the world.

This is great news for families.

A stronger economy means more jobs, higher incomes, and more opportunities for young people. It means we can invest more in important public services like schools and hospitals.

If we continue with National’s successful programme, New Zealanders can lock in the economic gains we’re starting to see.

That if depends on another National-led government because as  Bill English said during Question Time yesterday, the job isn’t finished:

. . . New Zealand’s growth rate is better than that of quite a few developed countries, but, of course, the real measure of its success is whether it is providing more jobs for New Zealanders and higher incomes for New Zealanders. The good news is that forecasters are generally expecting that New Zealand’s growth rate will be maintained through 2014. This, however, is no cause for complacency or for a fiscal lolly scramble. This country has a lot of work to do yet to ensure that every New Zealander who can work can get a job, and that all those New Zealanders who have a job are paid in a manner that they regard as appropriate. . .

The economy is growing and the free trade agreement with China, has played an important role in that.

With growth improvements in other indicators which depend on that including education, employment and health  are following.

But there is more to do.

The government has laid a strong foundation and it needs another term to build on that.

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