The differences between New Zealand and its leading trade partner China have become increasingly difficult to resolve as Beijing's role in the world grows and changes, Prime Minister Jacinda Ardern said on Monday.
The remarks come at a time when New Zealand is under pressure from some Western allies for refusing to use the Five Eyes intelligence and security alliance to criticize Beijing.
In his speech at the China Business Summit in Auckland, Ardern said there were things China and New Zealand "disagreed, disagreed" with, but added that these differences do not need to explain their relationship.
"It will not escape the recognition of anyone here that as China's role in the world grows and changes, the differences between our programs - and the interests and values that shape those programs - have become increasingly difficult to integrate," Ardern said.
"This is a challenge that we, and many other countries in the Indo Pacific region, but also in Europe and other regions, are facing," he added.
In her remarks that sparked a reaction among Western allies, Foreign Minister Nanaia Mahuta said last month she was not happy with the expansion of Five Eyes, which included Australia, Britain, Canada and the United States. Learn more
"This statement appears to have been intended to critically criticize critics following Mahuta's remarks last month," said Geoffrey Miller, an international analyst on the political website Democracy Project.
However, the comments do not change New Zealand's total flexibility into friendly China, or at least neutrality, he said.
"Ardern and Mahuta are selling the new situation as New Zealand pursues a" foreign policy "that is unreliable for any major organization," he added.
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China, which accounts for about a third of New Zealand's exports, has accused Five Eyes of colluding with them by making statements about Hong Kong and the treatment of Muslim Uyggurs in Xinjiang.
New Zealand's parliament on Tuesday is expected to consider a motion by a minority party to declare Xinjiang's status as a genocide.
Ardern said New Zealand would continue to discuss these issues individually as well as with its partners, noting that managing relations with China would not always be easy.
The Chinese ambassador to New Zealand, Wu Xi, who also spoke at the event warned that issues related to Hong Kong and Xinjiang are internal affairs in China.
"We hope the New Zealand team can have the right attitude and position, comply with international law and not interfere in China's internal affairs with a view to maintaining progress in our relations," he said in a statement.
Beijing has been at loggerheads with Australia and imposed trade restrictions after Canberra called for an international investigation into the source of the coronavirus. China denies the sanctions are penalties, saying the reduction in imports of Australian products is a result of consumer decisions.
Over the weekend, United States Secretary of State Antony Blinken said China had recently acted "like an outrage abroad" and was behaving "according to the opposition." Learn more
Asked if New Zealand would risk retaliation against China, as did Australia, for price controls, Ardern said: "It would be a concern for anyone in New Zealand if we consider 'Are we talking about this or are we too worried about the economic consequences?'"
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