Backing Chinese investment
The largest-ever New Zealand forest industry delegation to China’s showcase Global Wood Trade Conference has made the case for more investment in New Zealand forestry and timber processing.
Forest Owners’ Association president Peter Weir told delegates at Chongqing that more timber processing in New Zealand, before export, would reduce the overall energy and carbon emissions required to produce and transport the finished product.
“There’s also a particular opportunity for primary processing of pruned logs in New Zealand rather than the current approach of mixing quality logs with sapdegraded logs, and a subsequent loss of value by both parties,” he said.
Forestry Minister Shane Jones told the conference New Zealand was heavily reliant on access to foreign capital and needed to substantially increase its forest reserves. Those factors were behind the Government’s development of a more streamlined process for foreign investment in forestry, and created a “special opportunity” for those who were interested in working with New Zealand.
Mr Jones invited potential investors to consider connecting with the New Zealand industry representatives (at a time when there was increasing concern in China over the implications of US tariffs).
Numerous Chinese speakers at the conference referred to the trade war with the US, and their expectation of a long drawn out battle. Commentators at the conference predicted the tariffs could cost China 1.5 per cent of its GDP.
Chinese investors acknowledged that the US trade problems were an opportunity to strengthen other trading partnerships, however, and welcomed Mr Jones’ invitation.
Meanwhile, New Zealand Forest growers and processors reported constructive engagement with members of the China Timber and Wood Products Distribution Association, which hosted the conference. The CTWPD has thousands of members across China, Mr Weir saying there was interest in opportunities to invest in forests and processing in New Zealand, as well as securing additional wood supply.
A number of the CTWPD group expressed interest in a reciprocal visit to New Zealand later in the year to follow up on some of those options.