New Zealand to seek trade diversity as China slows, Hipkins says

New Zealand’s government plans to focus on trade diversification to help insulate its economy from the slowdown in key trading partner China, Prime Minister Chris Hipkins said.

“The slower than expected recovery in the Chinese economy has had an impact on New Zealand,” Hipkins told Bloomberg Television in Auckland Wednesday. “That is one of the reasons our government has been very focused on trade diversification.”

Chinese demand is weakening for key dairy exports, with the nation holding high inventories of milk powder and other dairy products. Last month, New Zealand-based Fonterra Cooperative Group, the world’s largest dairy exporter, said its payment to its local suppliers this season could be 17% less than a year earlier, citing reduced purchases from Chinese customers.

Earlier Wednesday, Hipkins unveiled his Labour Party’s economic priorities ahead of the Oct. 14 election, one of which was to expand export opportunities by pursuing more free trade agreements. India is in his sights, he said.

“After securing trade deals with the UK and EU this year, my next priority will be to lead a Prime Ministerial delegation to India within the first 100 days of a new government,” he said.