Is NZ becoming too dependent on the Chinese market? It’s a question worrying many authorities as they see China absorbing the bulk of NZ’s exports of milk powder, but also 50% of NZ wool and forestry exports, as well as big volumes of seafood, fruit and sheep meat. ANZ Bank economists Cameron Bagrie and Con Williams, taking what they call “a big picture view” have done an exercise studying alternate Asian markets. They say while the speed of the increase in NZ’s trade connectivity with China has been staggering (China now takes 22.6% of total exports), NZ has hardly been standing still in other markets.
Over the last 5 years, double-digit growth in exports has been achieved in 46 of the countries NZ trades with (22% of total).
We are of course vulnerable to China, but the fact we are growing other markets also mitigates the risk.