China floating NZ an infrastructure debt trap highlights 3 Waters concerns

Here we go…

China wants to help New Zealand recover from Cyclone Gabrielle, including financing, constructing key infrastructure

The Chinese Ambassador believes China can help New Zealand recover from Cyclone Gabrielle and be more resilient, including through collaboration on the financing and construction of key infrastructure.

In a letter shared on Wednesday evening to Newshub, Chinese Ambassador to New Zealand Wang Xiaolong says China sees “a lot of potential for China and New Zealand to work together”, including on infrastructure development.

China has a history of financing infrastructure projects around the world, particularly through its trillion-dollar Belt and Road Initiative (BRI). China sees it as a way to strengthen ties between the countries, but critics have argued it’s just a mechanism for China to grow its power or influence globally and put some countries receiving funding into debt traps.

…as Chinese and American tensions ratchet up, both are attempting to influence everyone else in the Pacific.

China’s interest in Grey Zone advancement and an eye on our infrastructure highlights the criticism of their involvement in the creation of 3 Waters.

In 2017, Infrastructure NZ led a delegation of 33 senior New Zealand public and private representatives to the UK. The purpose of the all expenses paid delegation was to investigate Scotland’s infrastructure innovations since devolution, especially their water system which ended up being the structural basis for 3 Waters.

Criticism of the financial structure of 3 Waters raises serious questions about the ease with which a failing water entity could be privatized.

Under the current 3 Waters legislation, the new water entities cannot be ‘bailed’ out by their council ‘owners’, and the entities are also empowered to sell assets if they can retain the capacity to exercise their duties functions and powers. The ‘owners’ can’t prevent this, nor can the Regional Representative Group or the appointment board.

Infrastructure NZ largest interests comprises of the China Construction Bank, Industrial and Commercial Bank of China and the Bank of China. These are the domestic pimps for China’s Belt and Road project so why are we allowing Chinese interests to influence our infrastructure?

The Pacific is the new friction point between America and China, NZ would be naive to believe we aren’t on the chessboard and only raises more questions about the need for neutrality.

Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.