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TICKER VIEWS – Is New Zealand really cosying up to China?

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The diplomatic rift between Australia and China continues to worsen, exacerbated by Scott Morrison’s government tearing up controversial infrastructure agreements.

Canberra is bracing for retaliation from Beijing, after it torpedoed Belt and Road Initiative agreements China signed with the Australian state of Victoria.

Australia hasn’t hesitated to stand up to an increasingly assertive and powerful China. It led calls for an independent investigation into the origins of COVID-19, much to China’s fury.

Beijing has even shared a 14-point list of grievances that it has against Australia.

Chinese President Xi Jinping, right, and New Zealand Prime Minister Jacinda Ardern shake hands before their meeting at the Great Hall of the People in Beijing, Monday, April 1, 2019. (Kenzaburo Fukuhara/Pool Photo via AP)


TREADING CAREFULLY

New Zealand’s relationship with China has also been under the spotlight, but for completely different reasons.

New Zealand has been accused of turning its back on its “Five Eyes” allies, amid claims Jacinda Ardern’s government is soft on China.

There’s no question that Australia and New Zealand have fundamentally different approaches to handling the increasing assertiveness of China.

But is New Zealand moving closer to China?

Robert Ayson is a Professor of Strategic Studies at Victoria University of Wellington. He says that while New Zealand doesn’t have a “hardline, zero sum approach to [its] relationship” with Beijing, it “… has taken a strong view on China compared to where it was 7-8 years ago.”

“New Zealand wants to maintain good relations with traditional partners, particularly in the Five Eyes context,” he told Ticker News.

“New Zealand also wants to keep room for a productive relationship with Beijing. New Zealand is unlikely to go down the path that Australia has…”

Australia’s actions have seen it become a victim of China’s economic coercion. New Zealand is seeking to tread carefully, mindful of its economic reliance on China.

FUTURE OF FIVE-EYES

New Zealand has on multiple occasions spoken out against China, including over human rights abuses in Xinjiang.

But the island nation has also been conspicuously absent from some joint statements from its Five-Eyes allies, as it is wanting to chart its own course when it comes to its dealings with China.

The 70-year-old intelligence grouping is made up of Australia, Canada, New Zealand, the United States, and United Kingdom.

New Zealand’s Foreign Minister this week revealed that New Zealand was “uncomfortable” with expanding the remit of the alliance.

Nanaia Mahuta believes the focus of the group needs to remain on intelligence, not on pressuring or criticising China.

Robert Ayson says the “comments did catch out a few people”, given they were made “in a public forum”.

UNSOLICITED ADVICE

Australia’s Foreign Minister Marine Payne travelled across the Tasman this week, taking advantage of the new travel bubble, for a face-to-face meeting with her Kiwi counterpart.Marise Payne was asked by a journalist if she would like to see the Ardern government take a tougher line on Beijing.

“One thing I have learnt in my role in this job as Australia’s Foreign Minister is not to give advice to other countries,” she responded.

It’s advice that New Zealand’s Trade Minister would have done well to heed in an interview earlier this year.

Appearing on CNBC, Damien O’Connor urged Australia to follow New Zealand and “show respect” and “a little more diplomacy” to China.

The comments went down like a lead balloon in Canberra, as the Minister was left to mop up a diplomatic mess of his own making.

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Rate cuts ahead? US stocks bounce as inflation cools

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Investor sentiment is improving as fresh data out of the US and Australia shifts expectations for central bank action.

Stronger-than-expected labour market figures in Australia have raised questions about whether the Reserve Bank will move ahead with a rate cut next week. While the RBA has signalled it is watching data closely, the resilience in employment may force a delay.

Meanwhile, in the US, softer inflation data has lifted hopes that the Federal Reserve could cut rates later this year. That news helped spark a sharp turnaround in US equities, with the so-called “sell America” trade now unwinding as buyers return to Wall Street.

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Trump’s $600B Middle East Deal: What It Means for Global Stability

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President Donald Trump’s four-day Middle East tour during his second term has sparked global attention, locking in a monumental $600 billion investment from Saudi Arabia. From AI to defence, space to energy—this economic pact is reshaping U.S. foreign policy.

In an unprecedented move, Trump also lifted long-standing U.S. sanctions on Syria after meeting its new president, raising eyebrows among traditional allies.

Ticker News anchor Veronica Dudo speaks with Erbil “Bill” Gunasti, former Turkish PM Press Officer and Republican strategist, to break down the implications for national security, global diplomacy, and the path to peace in Ukraine.

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Trump’s AI deals raise concerns over China ties

Trump’s AI deals in the Middle East spark division over national security risks and concerns over China ties.

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Trump’s AI deals in the Middle East spark division over national security risks and concerns over China ties.

In Short:
Trump’s AI deals with Saudi Arabia and the UAE are causing internal conflicts in his administration over US national security. Officials are concerned that American technology supplied to the Gulf could ultimately benefit China, leading to calls for enhanced legal protections.

President Donald Trump’s recent AI deals in Saudi Arabia and the UAE are causing internal conflicts within his administration.

Concerns are rising among officials, particularly China hawks, about the implications for US national security and economic interests.

Agreements include shipments of vast quantities of semiconductors from Nvidia and AMD to the Gulf states, prompting fears that American technology could ultimately benefit China, given the region’s ties with Beijing.

While the accords include clauses to limit Chinese access to the chips, some officials argue that further legal protections are necessary.

Critics, including Vice President JD Vance, have suggested that maintaining US dominance in AI is crucial, and shipping chips abroad might undermine that goal.

Supporters of the deals, including AI Adviser David Sacks, argue the need for American technology in the Gulf to deter reliance on Chinese alternatives.

Despite this, internal discussions are underway to potentially slow down or reassess the agreements due to ongoing national security concerns.

Conversations have also included proposals for a significant chip manufacturing facility in the UAE, which many officials deem risky due to China’s influence.

Additionally, worries persist about G42, an AI firm in Abu Dhabi, which has historical ties to Huawei.

The agreements with Gulf countries promise to enhance their technological capabilities while necessitating careful oversight to address US security priorities.

 

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