I am here in China with this delegation to support the growing relationship between our two countries, which has gone from strength to strength over the years. This is a very important relationship for New Zealand. The high-level turnout for my visit, including President Xi Jinping and Premier Li Keqiang shows the importance China also attaches to this relationship.

 

In particular, I am here in China to celebrate the 40th year of diplomatic relations between our two countries. The relations began in December 1972, and it’s good to remind ourselves how far we’ve come in that time. To a New Zealander in the early 1970s, China would have seemed a mysterious country, very large, very populous, with a rich history but largely unknown. And I doubt many Chinese knew much, if anything, of New Zealand.

 

Our first diplomats had to walk across the border from Hong Kong, because in those days China had no international flights. Now there are daily flights between New Zealand, and those flights are very well used. China has become our fastest-growing and second-largest source of visitors, with almost 200,000 people coming to our country each year. And over the same period, New Zealanders made 66,000 visits to China, double the number from 10 years ago. I would like to see even more travel between the two countries. On New Zealand’s part, we’ve been working to provide the best possible experience for our Chinese visitors. On this visit, I’ve announced new extended visitor’s visas for Chinese tourists, and President Li and I agreed yesterday to make business travel easier through three-year multi-entry business visas.

 

Education is another important way to grow awareness and understanding between our countries. Forty years ago, New Zealand provided three scholarships for Chinese students, and China accepted three New Zealand students in return. Today, China is the largest source of international students in New Zealand, numbering over 24,000. In New Zealand schools, a growing number of young people are learning Chinese. I would encourage New Zealand students who want to develop their language skills to come to China and we are very keen to see more young Chinese come to New Zealand. We offer high-quality, cost-competitive schools and institutions in an English-language environment. We have a code of practice to ensure high standards of care for overseas students. And our educational institutions have growing links with their Chinese counterparts, including Peking University.

 

I am also here in China to mark the fifth anniversary of our hugely successful free trade agreement. New Zealand remains the only developed country to have signed such a comprehensive agreement with China. On the back of that agreement, New Zealand’s goods exports to China have more than tripled within five years, and China is now our second-largest market. China has also become our largest source of imports. So our trade relationship is in very good shape, and our countries are on track to achieve the goal, which I reaffirmed with President Xi at Boao, of doubling two-way trade to $20 billion dollars by 2015.

 

Outside our own bilateral agreements, China and New Zealand are proponents of trade liberalism across the region and indeed globally. We are both involved, for example, in negotiations toward a regional comprehensive economic partnership, which would be a free trade agreement between 16 countries in the Asia Pacific region. New Zealand was one of the earliest countries to support China’s trade and economic integration with the rest of the world. New Zealand’s then Trade Minister, Lockwood Smith, was the first trade minister to conclude negotiations agreeing to China’s accession to the World Trade Organization. Mike Moore, another former New Zealand Trade Minister, was Director General of the WTO in 2001, when China joined, and also when the Doha round was launched. And we hope that another New Zealander, Trade Minister and a longtime friend of China, Tim Grosser, will have the opportunity to bring this round to a conclusion.

 

The investment relationship between China and New Zealand has been growing. Chinese firms like Haier and Bright Dairy have been making investments in New Zealand, and a growing number of New Zealand companies are investing in China. This is good for both countries. My government welcomes overseas investment in New Zealand because it adds to what New Zealanders can invest on their own. It creates jobs and it increases incomes. When it comes to purchasing sensitive land in New Zealand, we have rules to ensure that New Zealand benefits, for example, from new job opportunities, new technology, or better access to export markets. My government supports those rules, and we apply them fairly and consistently across all potential investors in a transparent way. Our transparency and stable business climate is part of the reason we are considered a good country to do business in. Forbes ranks us number one on the list of best countries to do business, while the World Bank puts us third after Singapore and Hong Kong. We have excellent legal and economic institutions and a banking system that came through the global economic crisis in good shape.
 

A recent survey showed that more than 75% of New Zealanders see the Asian region as important to the country’s future. Asia is rated as more important than Europe, North America, and every other region in the world apart from Australia, our closest neighbor. I’ve already mentioned education and tourism, which are excellent examples of people-to-people linkages. There is also a lively cultural exchange between our two countries, including between our museums, artists, writers, and performing artists. The world-class Royal New Zealand Ballet is touring five Chinese cities this month. Last November, our national football, competed in China in Shanghai as part of the 40th anniversary celebrations. Fittingly, the score was a one-all draw.

 

Our two governments cooperate across a wide range of areas. On this visit, for example, I’m taking part in events recognizing our links across education, in science, fisheries, investment, tourism, immigration and narcotics control, amongst others. With our different cultures, different histories, and different political traditions, it’s only natural that we have a different perspective on some issues. But the important thing is we are able to express our views with honesty and respect. And there is much more that we can share and learn from one another. Our two education ministries are working together to see how we can assist China in its education reform and development plans. China has signaled an interest in working with New Zealand on the development and delivery of social policy programs. We have active defense exchanges, we work together on law enforcement, and we have assisted each other after destructive earthquakes.

 

Our cooperation extends beyond our two countries. Last year, New Zealand and China announced a unique partnership with the Cook Islands to deliver an improved water main system. We share membership of several key membership groupings such as APEC and the East Asian Summit. Our UN peacekeepers work alongside each other in various parts of the world. We take our international contributions seriously, and New Zealand has a long history of global commitment. That is why we seek a non-permanent seat on the UN Security Council in 2015/2016.

 

The New Zealand government wants to build on these very firm foundations, so last year I launched the New Zealand-China strategy. The strategy is about getting greater coordination and effectiveness across all the government agencies that work in and with China. And it’s about developing more targeted and cohesive services to help successful businesses develop and grow in China. The China Strategy has a strong trade and economic focus. It also recognizes the importance of retaining and building a strong, resilient political relationship. I’m pleased to say it’s been positively received in New Zealand and China.

 

The strategy is already changing the way we operate and I want to mention two things in particular. The first is the formation of the New Zealand China Council. The Council’s aim is to bring together a wide range of New Zealanders who are engaged with China across different fields. Tomorrow the Council and its Chinese partner, the highly-regarded China Center for Economic Exchanges are co-hosting the first ever China-New Zealand Partnership Forum. This is a big step forward. The forum is an opportunity to involve business and non-government organizations in the dialogue between our two countries. They have a huge part to play.

 

The other result of the China strategy that I want to highlight is a reassessment of New Zealand’s diplomatic footprint in China. We want to make sure that New Zealand businesses, organizations, and individuals are well-supported in their engagement with your great country. So after meeting President Xi in Boao, I am pleased to announce that we are expanding our diplomatic presence in China with more staff and a new consulate general in Western China.

 

Ladies and gentleman, together New Zealand and China have made enormous strides in our relationship over the past 40 years. We should be very proud of what we have achieved. This visit gives us another opportunity to reflect on those 40 years. It has also given us the opportunity to look forward, and to consider the possibilities that lie ahead for our two countries. China will continue its remarkable growth, both as an economy and as a regional and global power.

 

New Zealand is a much smaller country than China, both in size and in population, but we are a committed partner. There is much we can do in the future together by teaming up, whether in China, in New Zealand or in other countries to harness our strengths. In the years ahead, New Zealand’s relationship with China will continue to grow stronger as we build mutual prosperity and well-being together.

 

Thank you for the opportunity to be back at Peking University. I wish you all the very best for your studies, and I thank you for your interest in New Zealand. Xie xie.