Trade figures a warning, says Peters

Winston Peters warns against allowing increased Chinese investment in farm-based businesses vital for New Zealand regional economies.

The latest trade figures, by reminding us of China's importance as a market for our primary products, show why our Government should be less complacent about the threat of Chinese retaliatory trade measures, says NZ First leader Winston Peters.

The figures also underscore the folly of allowing increasing Chinese investment in farm-based businesses vital to regional economies, he says.

"Kiwifruit was the star performer in our trade with China in the latest June year, lifting its receipts 85 per cent to $371 million," the Northland MP said.

"But Chinese officials have threatened to slow the flow of these and other primary imports from this country in reprisal against an investigation into allegations that China is dumping cheap steel here."

Mr Peters said trade figures showed dairy exports were by far the biggest commodity in our basket of exports to China.

"But the Chinese are muscling in on the processing side of the business with our Government's ill-considered blessing," he said.

"Plans have just been announced for China Animal Husbandry Group to take a 71.8 per cent stake in a venture to build a plant near Gore for manufacturing infant formula, ultra-high temperature cream and some skim milk powder," Mr Peters said.

"Milk supplies are being sought from local farmers, yet a Fonterra drying plant at nearby Edendale is working below full capacity."

Mr Peters said in just three years Chinese state-owned companies had all but taken over the lucrative infant-formula side of our dairy industry.

They also had the inside running in getting the necessary Chinese government approvals for selling the product in that huge market.