New Zealand tightens foreign investment rules
WELLINGTON, Nov 19: Foreign investors hoping to buy New Zealand's strategic assets will now have to convince the government it is in the national interest, officials said Tuesday, while denying the rules targeted China.
New rules will for the first time give the government power to reject overseas investments in sensitive areas if it decides they could be detrimental to the country, Associate Finance Minister David Parker said.
He said the test would apply to crucial infrastructure including ports and airports, telecommunications and electricity networks, as well as firms developing military technology or supplying intelligence agencies.
"These powers will be used rarely and only where necessary for protecting New Zealand," Parker said in a statement, citing investments that could "pose a significant risk to our national security or public order".
He said the new government power could also be used to veto foreign investments in media firms if they were a threat to democracy. --AFP