The Dalai Lama is encouraging New Zealand to embrace a free trade deal with China.

The exiled Tibetan leader who is visiting New Zealand says a free trade deal, which will help China to interact globally, is good. He says China is an important nation and should be encouraged to become part of the mainstream international community.

Prime Minister Helen Clark will not be meeting him during his stay in the country, although she spoke with him informally in Brisbane last week during a chance meeting at the airport.

However, the Dalai Lama will be a special guest at the Greens' caucus meeting tomorrow morning. Foreign Affairs spokesman Keith Locke says he is one of the world's most revered spiritual leaders and has long been seen as the embodiment of the aspirations of the Tibetan people. Mr Locke accuses the Government and National of shamefully reduced their meetings with the Dalai Lama to a series of chance encounters and unofficial drop-ins.

Mr Locke claims Prime Minister Helen Clark, Foreign Minister Winston Peters and National Party leader John Key lack the backbone to stand up to the Chinese government, which is discouraging contact, and of shunning New Zealand's obligations to be a polite and welcoming host.