​​Author: Cassandra Shih
 
Debate over Chinese investment in New Zealand agriculture has re-emerged following Shanghai Maling’s acquisition of 50 percent of New Zealand’s largest meat processor, Silver Fern Farms (SFF). Despite Ministers blocking Shanghai Pengxin’s application to buy Lochinver Station in September, New Zealand remains open to foreign investment provided it is likely to deliver greater benefits for New Zealand than comparative local investment. With Shanghai Maling’s $261 million bid significantly stronger than its $90 million late challenger, SFF shareholders will probably vote in favour of the partnership when they meet on 16 October. From there, Overseas Investment Office (OIO) approval is expected to take six to nine months.
 
As the Lochinver decision demonstrates, Ministers do not need to follow an OIO recommendation. However, SFF’s weak financial position, Shanghai Maling’s connections in China, the joint partnership structure of the deal and the fact the transaction does not involve any significant amount of land all point towards the sale getting the statutory and political green light. Furthermore, following concern over the Lochinver decision by high-ranking Chinese officials the Government will be keen to show it hasn’t soured to Chinese investment.

Authors: David Capie and Robert Ayson

When Defence Minister Gerry Brownlee left for China earlier this week, he said the aim of his visit was to gain a better understanding of China’s views on regional and global issues.  What he forgot to mention is that he would be giving one of the most important indications of the Key government’s thinking about the shape of the emerging Asia-Pacific security order.
 
Mr. Brownlee’s speech to China’s National Defence University is a noteworthy one in that it provides the most detail yet of how New Zealand sees China’s role in global and regional security.  There are plenty of compliments.  China's People's Liberation Army (PLA) is described as ‘having demonstrated its capacity as a responsible world actor’ in numerous disaster relief operations and the MH-370 search mission. There is a nod to Chinese participation in counter-piracy operations, and its leading role in UN peacekeeping, including providing force protection to NZDF personnel taking part in the mission in South Sudan.  Closer to home the PLA’s participation in Exercise Tropic Twilight in the Cook Islands is highlighted.  ‘We see real value in working together with partners such as China to help build capacity and resilience in South Pacific communities.’