The development potential of China's Direct Investment in New Zealand

Date: Friday, 10 August
Time: 3 -5pm
Venue: R204, 18 Kelburn Parade, Victoria University of Wellington


In recent years, with the gradual construction of “The Belt and Road”, a large number of Chinese enterprises have turned their sights overseas. As an important fulcrum for the Maritime Silk Road in the South Pacific, New Zealand has not only taken the lead in signing the “Belt and Road” cooperation agreement with China but has also focused on upgrading the China-New Zealand bilateral free trade agreement. This has created a good environment for the economic and trade exchanges between the two countries – it has opened up a new direction for China’s capital. In this context, this report will begin with a study of the current situation and motivation of China’s direct investment in New Zealand. It will apply the extended gravity model, the stochastic frontier production model, and scientifically measure the scale potential and efficiency of China's direct investment in New Zealand. Through empirical research, I found that although New Zealand has a good investment base, China's actual investment level and investment efficiency in New Zealand has not reached its ideal level. I will offer corresponding policy recommendations based on the positions of the Chinese government and Chinese enterprises. I propose China and New Zealand can continue to deepen cooperation through the "Belt and Road” Initiative, promote corporate social responsibility among Chinese enterprises, expand job skills training, and base investment decisions on sound research. As well as making up for the lack of research on direct investment in New Zealand, this report also provides inspiration and guidance for opening up a new chapter in the future of China and New Zealand.

About the speaker

Han Meng (PhD candidate at University of International Business and Economics in Beijing) is a visiting fellow from September 2017 to September 2018. He is conducting a project on Chinese Enterprises “Going Out Policy” and integration into global value chains in the “New Normal” economy.