Grab China with both hands, Key says

John Key: More Chinese investment tipped

Prime Minister John Key today told business leaders to grab the opportunities to trade with China "with both hands".

This also meant New Zealand has to accept and welcome foreign investment that would create jobs in the country, such as the Shanghai Pengxin deal.

Mr Key told the China Business Summit in Auckland that New Zealand is "going to see more Chinese investment in New Zealand".

He referred to the controversies over the Crafar farms bid from Shanghai Pengxin, a company which plans to announce further investment plans at the summit later today.

Opposition to such investment "was a really short sighted thing to do", Mr Key says.

"If someone is prepared to to come to New Zealand, create jobs, lift our products up the value chain, whether they come from China, Europe or the US, I do not care," he says.

Mr Key admitted he was on the public record that a simple sale of New Zealand farms was not in the country's best interest, but the Shanghai Pengxin deal was different.

It presented opportunities in distribution and creating products tailored for the Asian market.

"Significant jobs will be created in New Zealand," he says.

"We in New Zealand have to think about the future. If we want our kids to go to university, be paid a good wage and stay in New Zealand they have to have jobs to go to," he says.

But this will not happen if New Zealanders reject foreign investment.

The country was lifting its savings rate but still needed investment from overseas.

"The issue is not China. China is going to expand without us. The question is whether New Zealand gets a slice of the action. I support New Zealand grabbing it with both hands," Mr Key says.

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15 Comments & Questions

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Why dosn't Key grab "with both hands" the opportunity for NZ to become a state of Australia thereby guaranteeing a better future for the country in light of Bollards statement last week that NZ will NEVER catch up with Australia.

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Well said. However it is unlikely that Australians would amend their constitution to admit a state that has become a safe haven for cash for passports, North Korean arms sales, and Mega conspiracy.

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Hmm, selling the only thing we have a competitive advantage in (growing grass) to Chinese Government proxy companies so that they can export low value raw materials to be manufactured into higher value products in China doesn't sound like much of a plan.

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In the 1950's and 1960's, we were a prosperous nation. Our meat was processed by UK owned Meat plants and shipped to UK on UK owned Ships. We had no unemployment. This was as a result of foreign investment. On the flip side , we did own the farms.

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We had NZ companies, jobs and money. Then we got cheap imported goods, gone are our companies and the jobs, and on a downhill slide, except for greedy corporates, you tell me $8m bonus is not . and Keys is only looking after his own skin not the people he serves

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I remember until the early 1980s the cr*ppy, over priced poor quality goods made in NZ becuase we couldn't import better stuff!

However, our exchange is now over valued partly because we give tax benefits to overseas depositors.

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How is Mr Key helping us to grab China with both hands?

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Exactly it's all a one way deal with Kiwis banned by law from inevsting in China while Key's mates make big on selling the farm

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Nope, Mr Key, the average New Zealander prefers to grab heaps of overseas goods, overseas travel and services, loves to buy more properties (especially holiday homes) and grab as much social welfare benefits as possible - all using borrowed money.

When it comes to paying interest on the overseas borrowings, guess what? Best to borrow to pay that as well - too hard to work for a living.

And let's keep blaming the hard working Asians for New Zealand's troubles - how dare they work hard and have money to buy our assets. Assets we have developed and accumulated, guess what - using borrowings! Billions and billions of the stuff!

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Nixon went to China

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NZ exporters should change their old and arrogant attitude...wake up to the new monies from all Asian Consumers especially China. After all any money from another Culture and/or Race is still Legal Tender. Eh, Kiwis?

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From your comments, one can imagine you export to Asian markets. I somehow think unlikely. Talk/words are cheap, and largely comes from politicians or the uninformed.

Exporting to Asian markets is not for the faint hearted. First of all, your business generally speaking has to be a company with a considerable turnover and be well capitalised. You have to have trusted Asian connections and a product that can compete with copycat operators.

While it is possible to export to Asia, which has enormous potential, you have to be very well capitalised as risks are great. Just ask Fonterra.

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A few years ago, Fran O’Sullivan said that Fonterra had learnt some heavy lessons from Sanlu and the company would have to have confidence in the safety of its milk supply chain in China before reinvesting significantly in the local production of dairy products. The old saying goes: "Failure is the mother of SUCCESS"

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Morality has obviously departed from the political scene, when John Key has become so enthusiastic about strengthening ties with a totalitarian country which bullies, imprisons and executes its own people, allows for no dissent, and now is pushing for actual military ties with New Zealand.

Would he have enthused about strengthening business ties with Nazi Germany?

We are being colonised commercially by China. Moreover we have forgotten the warning that China hold its friends close but its enemies closer, and that it has its sights on territorial expansion into the Pacific.
Prime Minister John Key is either naive, or self-serving, with his eye on his own future. But there would be no surprises there - ambition is ambition after all.

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Your attempts to draw parrallels between Nazi Germand and modern day China are a true testiment to your unbelievable ignorance. Despite the fact that they could not be at further ends of the political spectrum you comment reeks of xenophopia and is an embarrasment to the world view of New Zealanders.

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