
Reserve Bank of New Zealand Assistant Governor Karen Silk stated that due to China's slowing economic growth and cooling demand for foreign goods, New Zealand exporters are redirecting goods previously sold to China toward other markets.
Affected by China's slowing economic growth and cooling demand, New Zealand Bank of New Zealand Assistant Governor Silke said that New Zealand exporters are actively switching goods originally sold to China to other markets, which also tests the country's ability to diversify trade.
AI-generated summary
China's second-quarter economic growth rate of 4.3% hit its lowest since the end of 2022, and China has consistently been New Zealand's largest trading partner.
As China's economic growth slows, New Zealand exporters are redirecting goods originally destined for China to other markets. (Reuters)
[Reporting by Lu Yongshan, translated by Yahoo/Liberty Times]
Karen Silk, Assistant Governor of the Reserve Bank of New Zealand, stated in an interview with CNBC’s "Squawk Box Asia" on the 3rd that due to China's slowing economic growth and cooling demand for foreign goods, New Zealand exporters are redirecting products originally intended for China to other markets.
Silk said, "We are indeed seeing many exporters considering, or actively redirecting, products originally intended for China to other markets. China is not the only export market."
Silk's remarks reflect how China's economic slowdown has spilled over to businesses in other countries. Dragged down by weak domestic demand and a persistent downturn in the real estate market, China's second-quarter economic growth rate stood at 4.3%, the lowest since the end of 2022.
China has long been New Zealand's largest trading partner and export market, purchasing about a quarter of New Zealand's exports over the year ending this July. According to data from the New Zealand China Council, New Zealand's total merchandise exports to China in 2025 are close to twice the combined total of its second and third-largest export markets (the United States and Australia).
New Zealand supplies over half of China's imported dairy products, an advantage established by a bilateral trade agreement signed in 2008 and further bolstered in 2024 by the granting of tariff-free status to all New Zealand dairy products. Therefore, if demand in the Chinese market continues to shrink, it will test how quickly New Zealand can achieve trade diversification.
AI outlook — possibilities, not facts
New Zealand exporters will continue to drive trade diversification to cope with declining demand from China.
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