However, the US Department of Homeland Security is known to have made a sweep through New Zealand university, Crown and private high-tech research facilities in recent months with a focus on potentially sensitive projects developing products with national security risk potential, and the Overseas Investment Office will be funded to undertake such monitoring.
"We've got to be a bit careful we don't over-regulate in this space or cause too much cost to taxpayers, but we have approved funding for a monitoring regime that enables the OIO and no doubt keeping in touch with security agencies, to have a weather eye on what is being sold and what perhaps should be called in for a closer look.
"There are dual-use technologies that are produced in New Zealand that may be providing services to New Zealand's armed services or security agencies and there may be occasions when those security agencies think that those things should not be sold overseas, or if they are sold overseas, sold on conditions. At present, the regime doesn't allow that."
All countries "routinely reserve the ability to screen in the name of security" in trade agreements and "most other countries give effect to that through their screening regimes," Parker said.
New Zealand's regime was "a bit outdated" and was being brought up to a common international standard.
Asked why the 'reach-in' power also extended to private news media, Parker said it was "in the interests of an open democracy that sometimes should be able to control whether its media is controlled by overseas entities or New Zealand entities," while denying any part of the new regime was aimed at any particular country, including China.
"We are not talking about any particular country."