10 Jul 2015

Exporters urged not to rely too heavily on China

8:56 am on 10 July 2015

The Finance Minister Bill English says China's stock market crisis underlines the importance for New Zealand exporters to look to other markets as well.

A flag flies in front of a court house in Shangdong Province, China.

A flag flies in front of a court house in Shangdong Province, China. Photo: DPA / AFP

Shares across China have lost nearly one-third of their value since mid-June, although there was a rebound yesterday, when the Shanghai index clawed back the previous day's losses.

Mr English said the continuing surge in China's middle class meant decades of growth were still to come, but all the same, exporters should not just rely on China.

"I think it underlines the need for us to understand the rest of South East Asia - countries like Indonesia, Philippines, Vietnam, very large populations who are going up the same development curve as China, and therefore offering some of the same benefits - also some similar risks."

Mr English said he had faith the Chinese government can use the levers available to weather the storm.

Meanwhile, the New Zealand China Council said China's stock market crisis should be monitored for its impact in this country, but it was most likely to be on consumer confidence.

Executive Director of the council Patrick English said the share market in China was important but it did not have the significance it has in other countries.

He says the initiatives the Chinese Government's put into play were already working.

He said the Chinese market was down 30 percent, but it was still 80 percent above what it was a year ago.

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