WELLINGTON, June 28 (Xinhua) -- New Zealand households have benefited much from cost-effective and high-quality Chinese products, according to a recent report.

 

Despite recent economic headwinds and changing demographics, China has the policy tools, labor, and innovation expertise to maintain manufacturing strength for the foreseeable future, New Zealand China Council Chair John McKinnon said on Friday.

 

"Amidst all the focus on China as our largest export market, it is sometimes forgotten how a supply of quality-made, cost-effective imports from there benefits our economy, household budgets and quality of life as well," McKinnon said.

 

There are very few strategic risks to New Zealand from our current levels of exposure to imports from China, according to a new report from the New Zealand China Council, "Sourcing from the World's Factory: Our Import Relationship with China."

 

"And even if we were to diversify our sources, China is now so embedded in regional supply chains that we would often in effect still be sourcing from China through an intermediary," the report said, adding that diversifying from China imports is neither necessary nor feasible.

 

The report pointed out that goods such as electrical equipment, machinery and textiles from Southeast Asia will still typically include a 10-20 percent contribution from China through raw materials and other inputs. Even electronics from Mexico include 27 percent contributions from China.

 

There are some clear benefits from importing from China, for example, potential cost-effective contributions to New Zealand's decarbonization through the import of Chinese environmental tech products, it said.