New Zealand's trade deficit with China widened over the 12 months through September as imports surged 21% to NZ$21.4 billion ($12 billion), Statistics New Zealand said Monday in Wellington. Exports to China rose 4% to NZ$20.6 billion in the same period, leaving a trade deficit of NZ$893 million — up from around NZ$170 million in the 12 months through June, its first deficit since 2017.
The jump in imports was driven by electric vehicles and mobile phones. Electric vehicle imports from China surged to NZ$865 million in the 12 months through September, up from NZ$319 million a year earlier. Total car imports from China, including used vehicles, more than doubled to NZ$1.46 billion. Chinese automakers BYD Co., SAIC Motor Corp., and Great Wall Motor Co. ranked fourth, fifth, and sixth among new car sellers in New Zealand in the nine months through September.
Electrical machinery imports from China rose 31% to NZ$4.5 billion, with telephones comprising NZ$1.4 billion of that. The surge in purchases came despite a sluggish domestic economy, with the Middle East crisis pushing up gasoline prices and boosting demand for EVs, smartphones, flat-screen TVs, and other electronics.
September imports alone jumped above NZ$2 billion to a new monthly record. China remains New Zealand's biggest export customer, buying around 24% of all shipments with a focus on dairy products, logs, and fruit.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing