While China continues to voice concern over the U.S. dollar, other countries are getting a boost from the country’s need to fulfill its internal consumer demand.
Last year, China and New Zealand reached a free trade agreement. That helped push New Zealand’s May trade figures to a "very healthy" $858 million surplus, the highest level in 16 years.
According to Stuff.com, “figures show the surplus for the month was equal to 21.7 per cent of exports the highest percentage since 1993. Exports hit $4 billion in May, up almost 6 per cent on the same month last year.”
The report continues:
Wellington Chamber of Commerce chief executive Charles Finny said the agreement was "almost certainly" a factor in the 92 per cent jump in exports to China in the three months to the end of May, compared with the same period last year…
Exports to China accounted for 80% of the rise in exports during May, mainly from milk powder, butter and cheese, and logs and wood. New Zealand milk powder sales have risen sharply after the melamine contamination scandal in China last year.
An article from the DairySite reports that last year, China suffered a decline in exports of its powered milk “after the Sanlu milk powder scandal that broke last September.”
In a report from the General Administration of Customs, “Lots of foreign countries stopped importing dairy products from China, and the country's milk industry suffered severely.
“Sanlu baby milk powder was found contaminated with melamine, killing six children nationwide, and sickening 296,000 infants, according to the Ministry of Health.”
In addition to increased exports, New Zealand is also showing other signs of recovery. Bloomberg reports the country’s “home building approvals rose for the third time in four months.”
There are also signs that Australia may be heading into recovery. Earlier this week, “the Australian dollar rose after China repeated its call for a new reserve currency, weakening the greenback against major rivals. Australia’s dollar also strengthened amid signs of a global economic recovery,” according to Bloomberg.
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