NZ wants to link China and South America

New Zealand is positioning itself to become a major, strategic link between China and South America under the Belt and Road Initiative.

Although the idea has been around for some time, it has picked up new momentum as the BRI gains traction globally, said Stephen Jacobi, executive director of the New Zealand China Council and one of the key drivers behind the "Southern Link" concept.

He said the BRI provides a framework for New Zealand to turn the concept into reality.

"We know that our Chinese friends want to expand out to South America across the southern part of the Pacific. We know that our friends in South America want to reconnect back with China in the same way. So, New Zealand is ideally positioned as a hub and a conduit," Jacobi said.

He said the difference in travel times is significant. Exporting through New Zealand takes up to 36 hours compared to between four and seven days through Europe or the United States.

The centrality of New Zealand was one of the themes discussed at the recent Building the Southern Link conference in Auckland. The conference on June 25 attracted more than 150 international experts, businesspeople and key stakeholders from New Zealand, China, Argentina and Chile.

Still early days

A spokesperson for New Zealand's Ministry of Foreign Affairs and Trade said Wellington was "supportive of the New Zealand China Council's efforts to explore the development of a hub in New Zealand that could link Asia with South America".

"It is still early days, but the idea has a lot of potential for New Zealand businesses in all relevant markets. New Zealand businesses, in particular, are expressing significant interest in the idea."

According to Catherine Beard, executive director of ExportNZ and ManufacturingNZ, there seems to be political support both in New Zealand and China for New Zealand to serve as a connector between South America and China.

"This is probably feasible if there is investment from our airlines flying to more destinations in South America directly - as we now do to Buenos Aires," she said.

"We are already very well connected to China with regular direct flights to and from Auckland and Christchurch - and I expect we will be better connected to South America if New Zealand is able to sign up to the Pacific Alliance trade deal."

The Pacific Alliance is a Latin American trade bloc, formed by Chile, Colombia, Mexico and Peru in 2011, which all border the Pacific Ocean.

Air New Zealand flies daily to Buenos Aires, while LATAM Airlines operates a daily service to Santiago in Chile.

China Airlines, China Southern, China Eastern and Sichuan Airlines operate services to and from China and New Zealand.

China's ambassador to New Zealand, Wu Xi, in a keynote address to the conference, said the BRI had created new energy and momentum for global economic growth, and a framework for ideas such as the Southern Link to take shape.

Wu said the idea of the council fits well with the key features of the Belt and Road, namely connectivity, openness and inclusiveness. "It also shows that all partner countries in the Belt and Road have unique ideas and unique value they can offer and contribute," she said.

The Belt and Road needs the active participation of all partners and stakeholders. "We need to encourage the involvement of governments, international and regional organizations, the private sector, and people from all walks of life in fostering and promoting friendship, mutual understanding and trust," she said.

"To this end, it is heartening to see such a diverse audience today, all committed to a common goal."

karlwilson@chinadailyapac.com

(China Daily 07/20/2019 page7)