It has achieved remarkable economic growth since the late 1970s, but remains predominantly rural and continues to be described as a developing country. New Zealand has had diplomatic links with China since 1972 and the relationship is generally warm and stable. China is New Zealand's fifth largest merchandise trade partner and a potentially important market for the export of services such as education and tourism. In recent years efforts have been concentrated on rural development projects in relatively isolated areas.
Poverty alleviation accounts for about a third of the total programme.
Focus on sustainable development. New Zealand Participation Funds are managed by the New Zealand Embassy, Beijing. Current Status Funding approved annually. This is a separate Poverty Alleviation Fund intended to improve living conditions in Shan'nan and Nagqu Prefectures in Tibet. Focus on sustainable development.