NZ must resist Chinese Govt pressure over Crafar farms

The Chinese Government is putting pressure on New Zealand to loosen our overseas investment rules through a top level diplomatic visit, Green Party Co-leader Dr Russel Norman said today.

China's fourth-ranked leader, Jia Qinglin, who is currently visiting New Zealand, has written a widely published opinion piece calling on New Zealand to provide a policy environment that would make it easier for Chinese investment.

"Mr Jia's visit and his opinion piece places enormous pressure on the ministers currently involved in making the final decision on the Crafar farms deal," said Dr Norman.

"The Chinese Government wants the Crafar deal to go through in favour of the Shanghai Pengxin company and is now exerting pressure on the Key Government through Mr Jia's visit.

"Behind the scenes lobbying from Chinese officials was probably one of the reasons the Government approved the Crafar farms deal the first time around.

"Now following a High Court review overturning Shanghai Pengxin's Crafar farms bid we are seeing a more overt attempt to exert pressure on those making the final decision on the Shanghai Pengxin bid from the Chinese Government.

"As identified by the Economist magazine back in 2009, this is part of a global strategy by China and other governments to acquire fertile land to produce food to send back home.

"However, it is not in New Zealand's long term strategic economic interests to allow the large scale purchase of our farm land by overseas buyers regardless of whether those buyers are Chinese or American," said Dr Norman.

"In the wake of Justice Miller's decision we need to urgently review the way our overseas investment operates.

"This review needs to concentrate on including the detrimental economic effects of accepting bids from overseas buyers, as these effects are currently excluded from consideration when making decisions to approve or not.

"The Chinese Government has laid down a clear challenge to the sovereignty of the New Zealand Government, no less than the United States challenge over nuclear weapons in the 1980s. The only question is whether this National Government has the courage to say no."

Link to economist article: http://www.economist.com/node/13692889