CHINA INVESTMENT RELATIONSHIP HOLDS TARGETED VALUE FOR NEW ZEALAND – REPORT

A new report by the New Zealand China Council and the New Zealand Institute of Economic Research (NZIER) says China’s foreign investment into New Zealand grew by a yearly average of 9% in 2014-2024 – a faster rate than New Zealand’s overall FDI growth over that time.

But most of the increase from China occurred in 2014-2019, with the rate of growth since flattening and then declining. NZIER confirms China’s global outbound investment has slowed in recent years.

China ranks 12th as a source of New Zealand’s cumulative FDI, providing less than 1% of total FDI, the report confirms. But it says FDI from Hong Kong’s (NZ$ 7.9 billion) and other sources will include some capital ultimately from Mainland China.

Auckland received most large investment from China, followed by Hawkes Bay, Canterbury and Waikato.

The report concludes not all New Zealand sectors will be suitable for Chinese investment. The New Zealand China Council says it makes sense to focus on opportunities that align with China’s sectoral strengths, where both Chinese outward and New Zealand inward policies support capital flow.

The Council cites renewable energy, advanced transportation, clean technology and food production as examples.

The United States has overtaken China as the largest source of investor migration applications under the new Active Investor Plus Visa (AIPV) policy. Chinese government requirements for time-bound repatriation of personal capital are at odds with New Zealand’s AIPV goals, the report says, but this has not deterred over 30 applications from China since 1 April 2025.

According to the report at least 60 New Zealand companies now have a corporate presence in China. But larger kiwi investments there are scarce. New foreign investment into China has decreased sharply over the last two years, according to NZIER’s data.

New Zealand China Council Chair John McKinnon says bilateral investment can help to ensure New Zealand’s relationship with China is more than transactional.

“Increased two-way investment can create long-term partnerships that expand trade and business but also guard against future shocks, increase market knowledge, and encourage transfer of innovation and technology.”

“New Zealand is entering a new ‘no stone unturned’ period of investment attraction and growth” says John McKinnon. “It makes sense to draw on our long-standing bilateral relationship with China as this work advances.”

The full report can be accessed here.