The political policies in China in the early 1970s were not developed as a result of Cultural Revolution in the country and the internal disagreements that were there on the foreign policy. Thus the relationship between the two nations did not establish due to huge difference in the foreign policies. The relationship between the two nations stepped up in the mid 1980 with the formation of Labour government in New Zealand. Thus the exports from New Zealand to China picked up in 1985 as China became the largest buyer of Wool from New Zealand. However the scenario changed after that as by the beginning of the 21st century the trade, education and the tourism relation expanded as the Chinese economy began to expand. In the year 2004 the first Free Trade Agreement between the two countries was signed. Also China was recognized as market economy. After this the relationships between the two nations have developed and grown stronger.All these aspects that have been highlighted have been the major aspects of the relationship between the two countries. According to Brady (2008) the relationship between the two nations had developed long ago and thus these relationships actually benefitted the countries in having successful relationship. Currently New Zealand is having strong relationship with China as a result of strong political, economic, cultural and social and military as a result of the relationship that has developed over the years. The free trade agreements provided export opportunities to both the countries and thus boost the economy. The other advantage of the free trade agreements is the elimination of the tariff and thus making the exported goods affordable. Further the trade agreements also include the investment clause wherein the investment that will be made in the economy is also considered.