New Zealand exporters shift from China to new markets as demand cools

New Zealand exporters are diverting shipments meant for China to other markets as demand from their largest trading partner cools, a central bank official said Thursday. The shift reflects China's economic slowdown. Reserve Bank of New Zealand Assistant Governor Karen Silk said exporters are actively seeking alternative destinations, noting China is not the only market. China bought roughly a quarter of New Zealand's exports in the year to July, nearly double the combined value shipped to the U.S. and Australia. New Zealand supplies over half of China's dairy imports under a trade deal granting duty-free access since 2024. The RBNZ raised its key rate to 2.75% on Wednesday to curb inflation, while elevated global commodity prices have given New Zealand farmers a relative cost advantage.