Trade surplus with China widens

The trade surplus with China was $2.0 billion in the June 2023 quarter, according to figures released by Stats NZ today.

Total goods and services exports to China were valued at $5.8 billion in the June 2023 quarter, with imports valued at $3.8 billion.

"New Zealand usually has a trade surplus for goods and services with China," international trade manager Alasdair Allen said.

"This is increasingly driven by trade in goods."

Total goods exports to China were valued at $5.4 billion in the June 2023 quarter, with imports valued at $3.6 billion. Over the past five years, there have only been three quarterly goods deficits with China.

In the June 2023 quarter, our largest goods export commodities to China were:

• milk powder, butter, and cheese, $1.8 billion
• meat, $927 million
• logs, wood, and wood articles, $778 million
• fruit, $506 million
• preparations of milk, cereals, flour, and starch (includes infant formula), $286 million.

Imports of goods from China have been falling since the December 2022 quarter, but remain higher than the June 2019 quarter.

In the June 2023 quarter, our largest goods import commodities from China were:

• electrical machinery and equipment, $752 million
• mechanical machinery and equipment, $645 million
• vehicles, parts, and accessories, $264 million
• furniture, furnishings, and light fittings, $192 million
• plastic and plastic articles, $169 million.

From this list of commodities, compared with the June 2022 quarter, only imports for vehicles, parts, and accessories have risen.

"Electric car imports from China have been increasing in recent periods," Allen said.

Electric vehicle imports continue to climb has more information.

Total services exports to China were $427 million in the June 2023 quarter, with services imports at $193 million.

"Services exports to China have increased since the reopening of the borders, but are still not back to pre-COVID levels," Allen said.

Travel exports made up 85 percent of total services exports to China in the June 2023 quarter, while they made up 91 percent of total services exports in the June 2019 quarter.