China's Asia-Pacific Trade Agreement and Digital Economy Accord ambitions to be Backed by New Zealand

By: Asia Business Outlook Team | Thursday, 29 June 2023

During Prime Minister Chris Hipkins' first visit to the country, New Zealand publicly supported China's membership in both an Asia-Pacific trade agreement and a digital economy pact.

In September 2021, China applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and in November 2021, it applied to join the Digital Economy Partnership Agreement (DEPA).

New Zealand "is aware of the high thresholds to which CPTPP participants must adhere," while it also "welcomes China to join the DEPA working group for in-depth discussions," according to a joint statement posted by the state-backed Xinhua News Agency.

Membership in the CPTPP requires the agreement of all member nations, which include Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam, and Japan. After applying in June 2021, the United Kingdom achieved an agreement to join in March and is set to formally sign the accord this year.

The Post reported in May that China had failed to obtain a public endorsement from Australia for CPTPP membership during Australian trade minister Don Farrell's visit to Beijing, with Chinese penalties still in place on select Australian products.

China and New Zealand, though, have agreed to strengthen bilateral economic cooperation on food security, agriculture, customs facilitation for trade and law implementation, as well as new technology.

The joint statement came after Chinese Premier Li Qiang’s keynote speech on the opening day of the World Economic Forum on Tuesday played up China’s economic prospects and blamed “the West” for calls on “de-risking”.

Both parties discussed “a range of regional and global issues, including the Indo-Pacific region, tensions in the South China Sea and Taiwan Strait”, the statement added.

“I talked about how important it is that engagement in the Pacific takes place in a manner which advances Pacific priorities and supports regional organisations – in particular the Pacific Islands Forum,” Hipkins said, referring to the influential group of 18 South Pacific nations.