NEW Zealand Prime Minister John Key said the relationship between New Zealand and China was in "fantastic shape", as he spoke at a business breakfast in Shanghai today.
The breakfast, organized by Kiwi Expats Abroad in China, was part of his week-long tour encompassing Guangzhou, Shanghai and Beijing.
The tour celebrates 40 years of diplomatic relations between China and New Zealand and the fifth anniversary of the Free Trade Agreement (FTA) - the first of its kind with an OECD country.
The FTA reduces tariffs on New Zealand exports to China, and is expected to save New Zealand NZ$115.5 (US$98 million) million per year.
Speaking to the 300 attendees, who included Chinese dignitaries, businessmen, New Zealand expats and delegates travelling with the prime minister, Key said the FTA had impacted positively on China-New Zealand trade.
"In the five years since we signed the FTA (Free Trade Agreement), we've done more business in that five years than we've done in every year combined prior to that.
He said New Zealand sold about NZ$3 billion worth of dairy products to China per year, which made up half of all dairy products coming into China, and 86% of the milk powder coming into China.
He quashed fears that NZ would put local producers out of business, noting that dairy demand was growing by 3% every year.
The trip is Key's first since 2010, and he is travelling with more than 100 delegates who include business leaders, politicians, and bureaucrats.