Trade surplus among benefits from a free trade ride China offers

BEIJING - Chinese Premier Li Keqiang's official visits to Australia and New Zealand are drawing global attention, particularly as the two countries hold striking trade surpluses with China.

The past few years have witnessed closer trade ties between China and the two Oceanian states. Their surpluses illustrate that China has not been deliberately pursuing surpluses in trade with other countries -- a fact that makes the free trade ride China offers for common development and prosperity more charming.

A huge outward demand from China's economic structural reform and consumption upgrade made this happen and will continue to do so, benefitting its trading partners

A free trade deal signed in December 2015 enabled a trade surplus of $33.5 billion for Australia in 2016, in a bilateral trade relationship worth $107.8 billion. China has been its largest trading partner, market for exports and source of imports for eight years in a row.

"We have seen what 6.7 percent growth (of China) got us last year. We saw our mining exports went up by 12 percent to China, our services exports went up by 21 percent," said James Laurenceson, Australian economist and deputy director of the Australia-China Relations Institute at the University of Technology Sydney.

In November, New Zealand began negotiations to upgrade its free trade deal with China. In 2016, bilateral trade grew to close to $11.9 billion, nearly tripling that in 2008.

Amid a global economic downturn, New Zealand saw its gross domestic product grow by 3.1 percent in 2016, while Australia saw solid growth for years. In the past two decades, Australia's working and middle classes enjoyed an increase of 40 percent in household incomes when adjusted for inflation.

Analysts attribute the two countries' economic performances, which remain quite outstanding for Western developed economies, partly to an increasingly close economic and trade relationship with China. Particularly, free trade deals with China have brought more opportunities to businesses and tangible benefits to their peoples.

Their experiences illustrate that because of China's efforts to push for free trade, regional integration and globalization, countries from around the world stand to benefit from China's continuing growth.

With its GDP expanding by 6.7 percent last year, China contributed 33.2 percent to global economic growth. With a goal set at around 6.5 percent growth this year, China is expected to remain a stabilizing source of confidence amid a fragile global economy.

In the face of a sluggish global recovery and a surge in protectionism in some Western countries, China's steady growth is a bright spot. And in joining China's message of free trade, Australia and New Zealand are sending positive signals to the world.

The Chinese government work report this year reaffirmed a continued commitment to boosting free trade and investment, and the Chinese premier has recently reiterated China's support for globalization and free trade.

Australian Prime Minister Malcolm Turnbull has vowed to fight any form of protectionism together with China. It is his firm belief that doing so is in the common interests of Australia, China and others.

New Zealand's Prime Minister Bill English has said his country is willing to work together with China in pushing globalization and free trade.

English also noted that New Zealand was among the first Western countries to support China in its accession to the World Trade Organization, launch of the Asian Infrastructure Investment Bank and implementation of the Belt and Road Initiative.

During the March 22-29 trip, Li is expected to seek new cooperation spaces to enable common growth with Australia and New Zealand. Increased political mutual trust, deepened win-win cooperation and higher levels of exchange are expected to push forward the comprehensive strategic partnership between them and China, further better benefitting their peoples.

Li's visits will send a positive signal to the Asia-Pacific and the rest of the world that China, along with Australia and New Zealand, is committed to promoting the liberalization and facilitation of trade and investment and safeguarding regional peace, stability and prosperity.