New Zealand Executive Government Speech Archive

It gives me real pleasure to speak at the opening of todays symposium. I count myself lucky to have the first words on a topic which is open to an enormous range of comment and analysis. My regret is, in fact, that Im not able to stay through the day to participate in the discussions that will undoubtedly flourish on the topic, given the energetic minds you have brought together to consider the relationship between New Zealand and China.

The major issue as I see it when considering New Zealand/China relations is how to maintain and build up the momentum of the relationship in a direction which benefits us both. How to relate a small country to a giant one. How to keep adding real substance to the relationship.

New Zealand aspires to an atmosphere of frankness and openness in its relations with other countries, which I think is shared by China in looking at us. We have built up a dialogue of the kind enjoyed by friends - who also have occasional differences, but we speak straightly to each other. We also try to remain predictable so as not to jeopardise everything.

I would like to hear your ideas on how to sustain, and expand, the place New Zealand occupies in Chinas view of the world; and do the same in New Zealand with regard to China. In addition, projecting that thought more widely, New Zealand has an interest in seeing the growth of an open, prosperous China, integrated into the fabric of the Asia Pacific region by the strands of positive relationships with its neighbours.

To promote that, New Zealand needs to work at encouraging Chinas engagement and integration with the rest of the world. As well - and this is in our own long term interests too - we should do what we can to support Chinas economic growth.

Without wanting to complicate the picture unnecessarily, I would also suggest that it pays to keep in the back of ones mind the thought that China is many different countries - just as in a trade perspective, seasoned traders remind us that China is not one market but many different markets. A degree of selectiveness or definition is useful when trying to identify the prospects for the future of the bilateral relationship.

Ive already mentioned the disparity in sizes of our two countries as an obvious factor in this relationship. A pessimist might say China simply doesnt need to bother with a country as small as New Zealand. In fact some might question whether China needs the rest of the world, period, as much as the rest of the world needs China.

I was struck, for instance, by a point made by Pieter Botellier - Head of the World Bank in Beijing - when visiting here a few months ago. He said that the potential size of Chinas domestic market, and other factors such as the high level of domestic savings in China mean that in the longer term, China need not be dependent on foreign trade or foreign investment to sustain economic growth.

But I believe Chinas Government shares our own view that New Zealand and China have a great deal to offer each other and that a strong and friendly relationship is very much in the interests of both sides. In regional and global terms, too, an engaged and participating China is vital for everyone.

On that theme of change, for example, we are finding that countries with systems a great deal larger than our own are keen to learn from the New Zealand experience. New Zealand Ministers often find themselves being virtually asked by their counterparts in other countries for advice on matters such as state enterprise reform, or tax and business deregulation. But that is what we are finding, and of course we are delighted to share information with the rest of the world.

In the case of China, certain areas such as state sector reform may be of particular interest, and we have hosted visiting delegations from various parts of the Chinese administration keen to study the New Zealand case. I would suggest that other particularly innovative pieces of New Zealand legislation, such as our Resource Management Law, could offer China insights into handling major tasks which still lie ahead on its path to sustainable development.

Sharing experiences of course brings with it the bonus of people-to-people contact. New Zealanders and Chinese are meeting each other in an ever increasing number of settings, for example, the numerous sister city relationships we have with China.

The Asia 2000 Foundation will play an important role in fostering this mutual familiarity. The Government recently announced a new commitment, through increased funding, to the work of the Foundation. And it is hoped that within the next year, direct flights between New Zealand and Shanghai will multiply the opportunities for visits both ways. Once China gives New Zealand the status of an approved tourist destination, growing numbers of Chinese tourists may be able to start travelling here. I note from Tim Beals letter inviting me to speak today the fact we intend to cover the major facets of the relationship - economic, political, and cultural - and will not be skirting the issues. I think youre on the right track with that last point because one of the risks in looking at China is to be carried away by the euphoria of the dragon awakening: China, the worlds largest market, a new superpower in the making.

Take for the sake of discussion (this being the Centre for Asia Pacific Law and Business) Chinas need to develop an effective and coherent legal infrastructure to underpin its economic development. China is making progress with this. But the lack of consistency with international rules and regulations governing trade and investment is, for example, a major sticking point in the negotiations about Chinas entry into the World Trade Organisation. New Zealand supports Chinas entry on the basis of a fair balance or rights and obligations and will continue to seek a constructive role in the ongoing negotiations.

Etablishing the effective rule of law in other aspects of Chinese society is an issue confronting Chinas leaders with obvious human rights implications. Some commentators say that people in China have far greater freedoms today, as a result of the economic reforms, than at any time in history. Be that as it may, concerns about human rights in China are one of the few areas where New Zealand and China dont see eye to eye. (Judging by letters I receive from members of the public here, they are a real concern to a section of the New Zealand community too.

The New Zealand Government would like to see China ratify the international human rights covenants and uphold the civil and political rights of all its citizens. Reports of human rights abuses (including in Tibet) undermine the confidence weve built up from dealing with China over decades. They damage the trust which New Zealand - just like China - rates so highly in assessing the health of the bilateral relationship. In this area, too, changes are nevertheless occurring which have the potential to influence radically the way things happen - the way life is lived - in China. For example, important changes to Chinas criminal law code are due to take effect next year. These will mean that for the first time, it will be possible to mount an independent defence in a criminal court case. For the first time, a defendant will be presumed innocent instead of guilty in a range of criminal cases.

To return for a moment to the area of multilateral cooperation, in which Chinas involvement is so important for positive outcomes, New Zealand welcomed the recent announcement by China of its decision to ratify the UN Convention on the Law of the Sea. New Zealand is also very much hoping that China will match the efforts of all other governments to ensure the conclusion of negotiations on a Comprehensive Test Ban Treaty at Geneva by the end of the month, and that the test which regrettably took place on 8 June will be Chinas last.

In concluding I should like to congratulate CAPLAB for taking the initiative of convening this symposium, which addresses matters of significance to all New Zealanders looking ahead to the next century. It is essential that we keep on putting our heads together like this, to assess where we are going - and where we should be going - in our relationship with what will possibly be the most important country in the world by them.

By shining a light on prospective difficult patches ahead, we have a chance of reducing the discomfort of the voyage. Making a real effort to understand where China is coming from means putting in the time to learn as much as we can - about its history as well as its present and planned future. My task in opening this meeting is perhaps easier than that of focusing the discussion on specifics. I wish you all a stimulating and productive day, and I look forward to hearing of the conclusions you reach.

Thank you.