Setting aside the political rhetoric of New Zealand's parties, it is clear that investment from China makes a lasting, positive contribution to New Zealand's economy, its people and its international standing as a brand.
NZ China Council executive director Stephen Jacobi told YIJU New Zealand that Chinese investment here was relatively small compared with investment from other countries, but was growing rapidly and spreading to every region. New Zealand's economic development was closely linked to China.
New Zealand is known for its primary industries and food production. But Stephen Jacobi noted that Chinese investment extended beyond the acquisition of Silver Fern Farms to the creative industries, waste management, manufacturing and wood processing.
These investments also brought benefits in both directions. Stephen Jacobi cited Beijing Capital Group's acquisition of Waste Management, New Zealand's largest waste collection and recycling company, which also brought new technology and equipment.
Technological exchange
Lifestyle is one thing, but New Zealand needs a solid commercial foundation to attract Chinese investors.
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Jacobi said New Zealand had natural resources that interested Chinese investors. But the real opportunity lay in how the two countries' technologies could complement each other. New Zealand, for example, offered China the opportunity to apply niche technologies in a small, highly developed Western country before moving into larger markets. On the other side of the coin, China was a highly innovative, technology-driven country. New Zealand start-ups could learn a great deal from their Chinese counterparts and use that knowledge to leapfrog several stages of development. Jacobi believed the New Zealand–China relationship gave both sides strategic advantages.
Huawei tests the waters
Chinese telecommunications equipment manufacturer Huawei has planned to invest NZ$400,000,000 in research and development and digital innovation in New Zealand over the next five years.
During a meeting with New Zealand Prime Minister Bill English, Huawei founder and chief executive Ren Zhengfei outlined the company's investment plans for New Zealand. These included local production, research and development, and cloud computing infrastructure.
Huawei also planned to buy more local products and services, helping local businesses become part of its global supply chain. Then Minister for Economic Development Simon Bridges believed Huawei's investment reached across the New Zealand economy and would open up global opportunities for the country.
“International engagement is essential if we want to remain competitive and productive in international markets. More diverse access to resources and technology helps improve New Zealand's innovation, collaboration and productivity.” Simon Bridges regarded this cooperation as a priority under the Business Growth Agenda. “We need to attract more high-quality overseas investment to support economic growth and create more highly paid jobs.”