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Home / Bay of Plenty Times / Business

Former PM Sir John Key takes on Zespri’s golden kiwifruit cause in ‘direct’ conversation with China’s foreign minister Wang Yi in Beijing

Claire Trevett
By Claire Trevett
Political Editor·NZ Herald·
6 Nov, 2023 06:16 AM4 mins to read

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The head of New Zealand’s biggest bank says he’s surprised by the lack of mortgage defaults but expects it will get worse.

Former Prime Minister Sir John Key has used his political heft on a trip to China to for a “direct” conversation about Zespri’s concerns about unlicensed growing of golden kiwifruit with top Chinese politicians in Beijing.

Key is in China on a business trip and was given a meeting with China’s high-ranked foreign affairs minister, Wang Yi, to discuss Zespri’s concerns as it takes legal action over unlicensed growers in China and pushes for stronger intellectual property law in China.

Key, Zespri chairman Bruce Cameron and Zespri executives met with Wang on Monday and are also meeting rural affairs vice minister Ma Youxiang to discuss the issue as China upgrades its Seed Law, the law covering intellectual property.

“What I said to him was that New Zealand growers needed to have confidence in the protection of their intellectual property if they were to allow licensed growing of the kiwifruit in China. If they could enjoy that confidence, then there were potentially enormous opportunities for Zespri and growers in China. He said we were both very direct and pragmatic.”

He said Wang said he was aware of the issue.

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“He understood what we were talking about, understood the significance of the issue and the importance of the Zespri relationship and, in general, that New Zealand businesses needed to be confident they could operate in the Chinese market and have their intellectual property protected.

“So it was quite a direct message, but in the context of what is a really good relationship.

“From the New Zealand point of view this could be a great market to grow fruit in with licensed growers. But the New Zealand growers will never accept that unless they are confident that both the government and the courts will ensure those property rights are protected.”

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In August, Zespri filed a civil case in the Intellectual Property Court in Nanjing, China, against two parties it claimed were involved in the unauthorised production, sale and marketing of New Zealand-bred Gold3 fruit.

The company has long had concerns about unlicensed growing in China of the fruit, which is marketed as Zespri SunGold and is New Zealand’s best global seller.

Key told the Herald he had told Zespri he was heading to China, and offered to help if he could, given his status as a former Prime Minister.

He had initially sought with rural affairs Vice Minister Ma Youxiang, but China had offered the higher ranked Wang as well as a sign of respect.

“Obviously, he’s a very senior member of the government. The message was both received and understood, and actually well-received. I’ve been trying to help Zespri for some time on this issue because they’re such an important business for New Zealand.”

He said Wang had then left to join President Xi Jinping, who is hosting Australia’s Prime Minister Anthony Albanese in Beijing.

Key said he had also spoken to Wang briefly about the incoming National Government and Prime Minister-elect Christopher Luxon. He had spoken to Luxon beforehand and told him he would pass on his good wishes.

“Obviously I can’t speak for the government, but as a former Prime Minister and someone that knows the incoming Prime Minister, I talked about the good relationships we had when I was Prime Minister. Successive New Zealand Prime Ministers have worked hard to build a good relationship with China.”

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China is an important market for Zespri, taking about 20 per cent of New Zealand kiwifruit. That makes it Zespri’s biggest export market alongside Japan.

Zespri estimates there are around 7850 hectares of unauthorised Gold3 plantings in China.

Key said his visit was primarily a private business trip – but he had also been invited to the World Snooker Championships in Tianjin.

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