Nick Clark: New Zealand should be wary of China's belt and road initiative

New Zealand has an infrastructure deficit of at least $100 billion, a huge amount for a small country and a significant drag on productivity and economic growth. Not all of this can be financed from within New Zealand, meaning a need for overseas investment.

National’s infrastructure policy for last year’s election expressed interest in sourcing finance from overseas. China’s Belt and Road Initiative (BRI) has been touted by some commentators, including former Prime Minister John Key, as a potential source.

Oliver Hartwich: Italy has left China's Belt and Road initiative - Luxon should consider why

In the world of politics, timing is everything. And sometimes, the timing of events can create a curious contrast that cries out for a closer look.

Such is the case with recent developments involving China’s Belt and Road Initiative (BRI), a global infrastructure project that has been controversial since its inception in 2013.

Last week, opposition leader Christopher Luxon said that he would “absolutely” accept money from China to fund new roads. This came in the context of National’s $24 billion infrastructure plan. As Luxon argued, accepting private and foreign investment would mean more infrastructure sooner. Few would disagree, but the question is about the state-controlled dimension of BRI.

Point of Order: China is learning the price – and pitfalls – of global leadership

There must have been good feelings in extending $1 trillion of lending to the developing world through China’s global Belt and Road Initiative (BRI). A warm tide of rising influence and overdue recognition.

But perhaps there are fears now in Beijing that this lending spree coincided with the tail end of a long wave of global financial expansion.