Chinese investors seek a coronavirus haven in New Zealand
- Jacinda Ardern’s success in containing Covid-19 and New Zealand’s business-friendly environment are helping to fuel investment interest
- But an upcoming poll, and a backlash over rich migrants and Chinese investors could affect New Zealand’s competitiveness
New Zealand has for years been known as a desirable destination for global business, with the World Bank ranking it first out of 190 countries for ease of doing business every year since 2017.
The country is finding itself atop the list for global firms seeking to expand and for people looking to emigrate, while more New Zealand citizens working overseas are returning home.
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On May 5, Microsoft announced that it planned to open a data centre in New Zealand. Company president Brad Smith said he had met Ardern last year and was impressed by the country’s digital ambitions.
“Our new data centre there will only accelerate its digital transformation and help propel all New Zealanders forward,” he said.
Microsoft did not provide any details, including when the data centre would be built, but the site would be subject to the rules of the Overseas Investment Office (OIO).
In New Zealand, foreign investments worth more than NZ$100 million (US$63.1 million) would need to be approved by the OIO.
Ardern said Microsoft’s move signalled that “New Zealand is open for business and quality investment”.