Lee Hudson Teslik
2008-04-16 07:00:00.0
Current rank: Not ranked

WASHINGTON -

With China’s appetite for natural resources and foodstuffs ever growing, regional trading partners Australia and New Zealand are attracting fresh attention. New Zealand made news April 7 by becoming the first developed country to sign a free-trade agreement with China (New Zealand Herald). The same week, Australia’s Prime Minister Kevin Rudd departed for his first tour of China, with rapidly expanding bilateral economic relations high on the agenda. Experts say burgeoning relations between China and its neighbors down under promise economic dividends, particularly for Australia’s mining industry and New Zealand’s farmers. They also raise political concerns, however, and threaten to bring a rise in protectionist sentiment that could undermine regional trade liberalization. China’s new interest in Australia and New Zealand stems primarily from its need for commodities, a trend that has already brought gains to Latin America and Africa, as noted in a 2006 report from Deutsche Bank. The Economist writes that China’s hunger has been “manna from heaven” for Australia, the leading global exporter of iron ore, which is running mines at full tilt and still can’t meet heady Chinese demand. ... New Zealand, too, has enjoyed booming exports to China, its fastest-growing trading partner. With rising food prices proving a burden for Beijing, China has expanded agricultural imports from New Zealand. ...

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