China’s political counsel (note, not a trade official) has threatened New Zealand over the Crafar Farms deal saying that New Zealand trade to China and investment from China is at risk. It seems an extraordinary action over a supposedly private business arrangement. As was Chinese Officials’ meeting with the OIO while the first Crafar farm decision was being made.
The political counsel confirmed that China has a “go global” strategy of promoting Chinese investment abroad. Companies like Pengxin, backed by interest-free loans from the government paid out of its massive depreciating foreign currency reserves, are to go around the world buying strategic assets. Naturally, the Chinese Embassy wants us to play along with that strategy.
But, surely, New Zealand (just like China) should put its own interests first. And selling our economic base isn’t in our interest.