Since January 2010 there has been a significant increase in the importance of China to New Zealand’s trade balance. 13% of NZ’s exports are now estined for the Chinese market (see graph) and it is estimated that by 2020 it will overtake Australia as our number one destination. According to the BNZ New Zealand’s annual exports to China are already 25% larger than that to the EU, almost 50% more than that to the US, and more than 4 times the value of exports to the UK.
The June trade figures were higher than expected when you think of the global issues especially in Europe and the US and the strength of the NZ$. However I suppose we really export water in that grass growth and agricultural produce determines our trade balance.