Trade Minister Todd McClay says he wouldn't expect there to be any implications for New Zealand's trade with China if the Government were to sign up to AUKUS Pillar Two.
McClay downplayed concerns over whether joining the trilateral security pact could agitate Aotearoa's largest trading partner in a Q+A interview.
The debate over whether the Government could sign up to Pillar Two has intensified in foreign policy circles, as observers suggest there's been a shift in diplomatic tone since the coalition was elected last year. The PM has previously rejected that characterisation, saying the country's approach remains the same as it had been under Labour.
Speaking to Q+A, McClay said he didn't expect China to weaponise trade "at all" if New Zealand were to agree to sign up. He was then asked whether he thought there would be any trade implications of joining AUKUS.
GCSB Minister Judith Collins says the country stands with the UK in its condemnation of China's "state-backed malicious cyber activity". (Source: 1News)
"I don't expect that there would be as long as we're open and talking about the reasons that we are doing these things," he replied.
"One of the most challenging things for any country, in the world, is when things happen as a surprise, and they don't understand."
Critics are worried that joining the second pillar of the pact could provoke trade retaliation from China or contribute to the militarisation of the Pacific.
The minister added that the AUKUS arrangement was about "regional security". Asked whether that referred to China, the minister said: "Regional security means many things."
Foreign Minister Winston Peters said there were "powerful reasons" for New Zealand to join Pillar Two of AUKUS as he met US Secretary of State Antony Blinken last month.
Winston Peters is likely to meet with the US Secretary of State and discuss NZ’s role with AUKUS. (Source: 1News)
But Peters later said in a speech that the Government was still a "long way from this point of being able to make a decision".
NZ not too dependent on China - McClay
China accounts for around 28% of New Zealand's exports, by far the largest single market, with the previous trade minister under Labour saying diversification was key.
McClay appeared to share a view that trade needed to diversify, though said he didn't believe local businesses were too dependent on China.
"We're not too dependent on China, but we need to make sure that we are opening the door to opportunities to countries from around the world."
What is AUKUS Pillar Two?
AUKUS is a strategic defence partnership between Australia, the United Kingdom and the United States. The pact centres on the Indo-Pacific region. Experts say it aims to combat China's military expansion in the area.
Formed in 2021, the AUKUS deal has two pillars.
The first pillar focuses on acquiring and developing eight nuclear-powered — but not nuclear-armed — submarines for Australia's defence forces.
The stated aim of Pillar Two is about sharing advanced technology, like artificial intelligence and quantum computing. The tech could also include drones or support systems for hypersonic weapons.
Former prime minister Helen Clark on the news Iran has sent drones to Israel, Gaza, the influence of China, and why she worries about New Zealand joining AUKUS Pillar Two. (Source: 1News)
For the full interview, watch Q+A at 9am on TVNZ+ or TVNZ 1
Q+A with Jack Tame is made with the support of New Zealand On Air
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