Fairfax News | 7 April 2013
HAMISH RUTHERFORD
China's ambassador says New Zealand has "over thought" his country's interest in acquiring land here, claiming other major farm purchases are unlikely.
One of New Zealand's largest ever international trade delegations is flying to China today, to celebrate five years since the signing of the historic free trade agreementhe trip comes amid predictions China will one day overtake Australia as our largest trading partner. Some warn the growth in trade is tied to the acceptance of Chinese investment, which is set to increase.
Xu Jianguo, China's top official in New Zealand, said foreign investment was an essential part of strong bilateral relations, but he did not expect Shanghai Pengxin's controversial purchase of the collapsed Crafar dairy empire to be the start of a pattern.
"I don't think that such cases will happen, that large amounts of Chinese companies will come here to purchase farms and properties, it won't happen," Xu said through an interpreter.
The purchase of more than 8000 hectares of dairy farms in the North Island by Chinese interests resulted in calls for limits to be placed on foreign investment in land.
Xu said China had no specific agenda for foreign investments, with deals representing "market forces". He had never heard of Shanghai Pengxin until he read about the legal dispute over the case in the media, he said.
"I think in this area you've completely over-thought Chinese investment in New Zealand farms and properties," Xu said, adding that investment here was now generally focused on manufacturing, construction and hotels.
Last week officials signalled that China was "aware" of the controversy surrounding investment, especially land.
"My experience in dealing with them is they're quite responsive to domestic politics," Prime Minister John Key said. The Government was always "upfront" with the Chinese about the type of investment that was desired.
"We don't gild the lily there. We tell them, ‘Look, if you want to invest in . . . an infant baby formula plant, we think that's a really good thing, if you just want to go and buy every farm in New Zealand we think that's a really bad thing.' "
Key conceded those who felt anxiety towards Chinese investment were actually being "logical" because of the vast scale of the country and its enormous foreign currency reserves.
Last week Chinese dairy company Yashili was given approval to build a $212 million milk processing plant in Pokeno, south of Auckland. Tim White, chairman of the New Zealand China Trade Association said the deal was part of roughly $750m of investment deals he was involved with or aware of from China into New Zealand. Virtually all of the activity had materialised since the Supreme Court dismissed appeals against the Shanghai Pengxin-Crafar deal.
"I wouldn't say it was a floodgate, but I think there was some pressure building up behind it."
His "personal opinion" was that growth in trade was tied to the acceptance, recalling clients whose attempts to enter the Chinese market suddenly smoothed after the Crafar deal.
Xu Jianguo, China's top official in New Zealand, said foreign investment was an essential part of strong bilateral relations, but he did not expect Shanghai Pengxin's controversial purchase of the collapsed Crafar dairy empire to be the start of a pattern.
HAMISH RUTHERFORD
China's ambassador says New Zealand has "over thought" his country's interest in acquiring land here, claiming other major farm purchases are unlikely.
One of New Zealand's largest ever international trade delegations is flying to China today, to celebrate five years since the signing of the historic free trade agreementhe trip comes amid predictions China will one day overtake Australia as our largest trading partner. Some warn the growth in trade is tied to the acceptance of Chinese investment, which is set to increase.
Xu Jianguo, China's top official in New Zealand, said foreign investment was an essential part of strong bilateral relations, but he did not expect Shanghai Pengxin's controversial purchase of the collapsed Crafar dairy empire to be the start of a pattern.
"I don't think that such cases will happen, that large amounts of Chinese companies will come here to purchase farms and properties, it won't happen," Xu said through an interpreter.
The purchase of more than 8000 hectares of dairy farms in the North Island by Chinese interests resulted in calls for limits to be placed on foreign investment in land.
Xu said China had no specific agenda for foreign investments, with deals representing "market forces". He had never heard of Shanghai Pengxin until he read about the legal dispute over the case in the media, he said.
"I think in this area you've completely over-thought Chinese investment in New Zealand farms and properties," Xu said, adding that investment here was now generally focused on manufacturing, construction and hotels.
Last week officials signalled that China was "aware" of the controversy surrounding investment, especially land.
"My experience in dealing with them is they're quite responsive to domestic politics," Prime Minister John Key said. The Government was always "upfront" with the Chinese about the type of investment that was desired.
"We don't gild the lily there. We tell them, ‘Look, if you want to invest in . . . an infant baby formula plant, we think that's a really good thing, if you just want to go and buy every farm in New Zealand we think that's a really bad thing.' "
Key conceded those who felt anxiety towards Chinese investment were actually being "logical" because of the vast scale of the country and its enormous foreign currency reserves.
Last week Chinese dairy company Yashili was given approval to build a $212 million milk processing plant in Pokeno, south of Auckland. Tim White, chairman of the New Zealand China Trade Association said the deal was part of roughly $750m of investment deals he was involved with or aware of from China into New Zealand. Virtually all of the activity had materialised since the Supreme Court dismissed appeals against the Shanghai Pengxin-Crafar deal.
"I wouldn't say it was a floodgate, but I think there was some pressure building up behind it."
His "personal opinion" was that growth in trade was tied to the acceptance, recalling clients whose attempts to enter the Chinese market suddenly smoothed after the Crafar deal.
