NZ Exporters Diversify Away from China Amid Economic Slowdown

New Zealand's exporters are redirecting their shipments originally meant for China to other markets as Beijing's economic slowdown impacts demand, according to an official from the Reserve Bank of New Zealand.

The country has been China's largest trading partner and top market, accounting for about a quarter of its total exports over the past year. However, growth in China's economy slowed to multi-year lows in the second quarter, weighed down by domestic demand and a prolonged real estate slump.

Assistant Governor Karen Silk stated that many exporters are diverting their products into other markets as they realize 'it is not the only export market.' New Zealand supplies over half of China's dairy imports under a bilateral trade agreement since 2008, which granted duty-free access for all its dairy products in 2024.

The global commodity prices surge due to the Middle East war and shipping disruption through the Strait of Hormuz has handed New Zealand's pasture-based farmers a relative cost advantage even as China-bound volumes soften, Silk added.