China

Parroting the obvious

In August 2014 real reporters around the world ran stories about China’s milk stockpile, and everyone in China who was anybody, knew China was stockpiling those resources.

The news that Russia is banning imports of dairy products from all EU states should be the least of our concerns.

What dairy farmers here should be doing, rather, is looking even further to the east, to China.

For there are some ominous signs that that country’s snapping up of massive volumes of dried milk powder produced in the west may well have been a stockpiling exercise and that it is now coming to an end ahead of an anticipated downturn in the Chinese economy.

That could have quite severe repercussions here where a lot of the ‘surplus’ milk, which has been sloshing about in the market, has gone to drying plants in an exercise which acts as a useful price stabiliser. The effects are already being felt in the arena of global dairy auctions, where prices dropped 8.4 per cent this week and are now 50 per cent lower than they were in February – and it’s worth noting that whole milk powder (down 11.5 per cent) and skim milk powder (down 6.5 per cent) were among the big losers.

So stand by for even more price cuts at the farm gate…

Yet, despite how many junkets to China and resources put in by NZ Inc and a newspaper, it’s only when Bill English makes comment on it off his own bat, does Frances O’Sullivan – a newspaper’s pre-eminent repeater – actually even record it as happening.

It was Bill English who finally punctured the myth that the lengthy price slump that has carved billions of dollars off New Zealand dairy returns is simply a short-run thing.

Not so, said the Finance Minister on his return from China this week.   Read more »

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Well bugger me, Bill English has become a free marketer

Bill English has just returned and discovered that the Chinese are sitting on a massive stockpile of milk products. From China:

The Finance Minister, fresh from a week long trip to China, New Zealand’s largest export market, said that there was a picture of an international glut of dairy products which would keep prices lower for some months to come.

In recent weeks the US Department of Agriculture had highlighted an increase in stocks of dairy prices being stored in China.

“It appears there’s been almost literally a mountain of milk powder in warehouses around China, more than people thought so it might take a bit longer to work through,” English said.

“The way it’s been described to me, there’s been a perfect storm of excess milk supply, influenced by events in Russia, Europe, in China, in New Zealand, Australia and that’s led to these prices which I think everyone regards, everyone believes are too low for the health of the dairy industry, whether it’s here, in China or in Europe, but it is going to take some time for the prices to pick up.”

English remained confident that there would be a recovery in dairy prices some time in 2015.

“I don’t think there’s much doubt that they’re going to pick up, it’s just a matter of when and how fast.”

Estimates ranged from picking up in a few months to remaining flat until Christmas, English said.

“I haven’t seen any estimate that it would take years to clear up.”

Read more »

Comment of the Day

Yesterday Phil Goff responded rather limply to Judith Collins’ robust kicking of Labour’s racist housing policy.

Born in China and now a Kiwi, Joey loves New Zealand and has a professional job here.

He wants to buy a home of his own but with house prices up on average in Auckland by $116,000 last year, he can’t afford it.

He resents the fact that offshore investors helped push up property prices and can outbid him at auctions.

It’s not racist to worry about the impact of offshore property investment on house prices, it’s common sense.

Chinese cities like Beijing and Shanghai don’t allow non-resident purchase of residential property and Hong Kong and Singapore impose taxes to discourage it.

Stopping foreign investment by those who never intend to live here is one element in cooling Auckland’s over-heated property market.

It doesn’t affect residents in New Zealand and any restraints would apply to all foreign investors, not just Chinese.

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Comment of the Day

With all the lack of facts and figures surrounding Labour’s race-baiting policy it is refreshing to see some real statistics, not some race based profiling of stolen data like Labour uses.

More interesting still is that it comes from one of our own commenters.

Nick Smith may have a point that Auckland’s housing “challenge” may not be affected by foreign investors. Certainly not Chinese investors. NZTE’s figures on the “Stock of total foreign investment in New Zealand by country” in the year ended March 2014 shows that the total foreign investment in NZ was $322.3billion.

Of that the investment from mainland China makes up just 1%. Even when you factor in investment from Hong Kong (1.6%) you end up with the same level of investment from the Chinese in total (2.6%) as from Japan alone (2.6%). Add in Singapore and Malaysia and you still only end up with just over 7% investment from Asia.

So where does the other over 90 odd % come from? Oh yes – English speaking countries with people with predominantly white faces from the US, Au, UK, Canada and the Netherlands!

Presumably investors from those parts will in many cases be looking for homes to buy in our biggest cities too?   Read more »

Is Phil Twyford screwed in Te Atatu?

Race-baiter and Labour MP Phil Twyford probably should have looked at his electorate profile before he started blaming the Chinese for Auckland’s housing problem.

Twyford is a Grade A halfwit for not considering his majority in Te Atatu, and the number of people who don’t fit his racial profiling who live and vote there.

Here are the most recent election results from Te Atatu. Note that National won the Party Vote, so there was a strong Twyford vote before he became a racist.

Labour 11,603 National 13,614 National Majority  2,011

Twyford 15,676 Ngaro  12,863 Twyford Majority 2,813

Then if you were to have a look at the electorate profile for Te Atatu in June 2015 you would discover some very interesting facts.  Read more »

What is the real effect of Chinese buyers on the market?

We have seen a great deal of smoke but not a lot of fire in the form of hard data from labour or anyone else talking about the effect of offshore Chinese buyers int he market.

In fact there is almost no fact, even Labour’s dodgy figures selectively created from a dataset stolen from Barfoot & Thompson aren’t facts.

So what are the real, empirical and demonstrable effects of offshore Chinese buyers in the market?

Paul Walker explains that there are none:

With all the xenophobic rubbish we are getting from Labour and bizarre calls for bans on foreign ownership of housing by the likes of the BNZ’s Tony Alexander I find myself asking, But what is the actual effect of foreign buyers on the prices of homes?  Read more »

Raybon Kan on Labour’s race-baiting dog-whistle policy

Raybon Kan writes in a newspaper about Labour’s race-baiting dog-whistle policy against Chinese.

Being Chinese in New Zealand always puts you on the back foot. We don’t play the race card: we show up with it stuck to our face. So, when mainland Chinese house-buyers are accused of being the nation’s problem, I can’t help but feel attacked as well. Because I don’t entirely buy it when you say it’s not about being Chinese in the face. We know what you mean when you say foreign ownership. You don’t mean state houses being sold to Australia. You don’t mean Canadian pension funds. You don’t mind the white: you don’t see the white. White is how things should be.

There’s a pattern. Historically, Chinese have never been welcome. From the gold miners and railway workers who weren’t allowed to bring women, to the Poll Tax, we’ve always been singled out for worse treatment. And easily so: Well, look. The people who attack mainland Chinese house-buyers say they’re not being racist – they say they’re being economist. But I bet if a wave of white investors showed up and paid way over the odds for houses, you’d be thrilled.

Whatever the valuations now, I think we’ll look back on today’s million dollar prices as mere blankets and beads. You think mainland Chinese house-buyers are rich now? These ones are Communists. You think there’s a lot of Chinese now? This is how many there are under a one-child policy. Imagine if we tried. We can’t win. If Chinese buy houses and pay you too much – you don’t like it. If Chinese in China buy houses over the phone, pay too much and don’t even move here – you don’t like it. What do Chinese people have to do?

No wonder you see lots of Asians at Auckland house auctions. It’s the only time in New Zealand that Asians get shown any love. In fact, if I’m ever in Auckland and feel depressed, I’ll pop into a house auction, just for the hugs.

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Another Kiwi with a chinky sounding name slams Labour

From the howling in the left-wing blogosphere it would seem that Phil Twyford’s race-baiting has gone down like a cup of cold sick.

There are still the apologists and sycophants out there who think there is nothing wrong with racial profiling, but imagine the howls of outrage if David Seymour announced that ACT had been leaked a list of welfare bennies and analysed the surnames to discover something or other from the data and concluded that those bloody Maaris with white man names are the root cause of unemployment.

Another lefty blogger, Tze Ming Mok, has written at Public Address:

Last week I filled in a survey about what the NZ Labour Party should do with itself. Half-facetiously I wrote something like: “Do it like the right does it. Lie about your true beliefs to appeal to ‘middle New Zealand’, win power, then underhandedly push through a radical left-wing agenda to end poverty and inequality.’

Guys, this is not what I meant. Thanks for listening but, to employ an ancient saying of my culture, UR DOING IT RONG. And thank you Keith Ng , for so forcefully explaining many of the reasons why it is wrong, in the manner of a genteel professor tearing your face off and shoving it down your throat in a white-hot stats rage.

To start with, like Keith I found it hard to separate my stats rage from my race rage. Amid the clusterfuck of Chinese-house-craziness today, American real estate bots have started following me on Twitter. Not kidding.

Phil Twyford and the Herald deserved all they got from the Ng Army. Reporting or communicating statistics is one of the times when it is entirely right to shoot the messenger; to shoot him and stomp on his pitiful corpse. The messenger is the one who does all the harm. But as for the study itself? Let’s get to defending its very existence in a moment, but the methodology and conclusions?

I don’t have any problem with the suggestion that foreign PRC-based investors are buying loads of houses in New Zealand (as are foreign white people but no-one cares about them, because the narrative is about predation from China, not our own stupid lack of regulation).  Read more »

Interview of the Year & Chinese Man of the Year

An interview with a Chinese investor in a newspaper, part of the collusion with Labour, reveals some interesting insights into the stupidity of media and the hard work ethic of Chinese.

Take this stupid question from Anne Gibson.

Do you know that New Zealanders are worried about Chinese buying our houses?

I heard about it, but why?

No we aren’t…only the left wing and NZ First are anti-Chinese, every house owner in Auckland hopes they get two Chinese families wanting to buy their house at auction.

That question though led to another stupid question and a brilliant answer.

Did you know Kiwis can’t afford to buy a first home?

I don’t understand. When I was here, I heard that they spent hundreds of dollars on food and drinks every week. I was so surprised. Things are cheaper here than in China. Why do you spend $100 on beer when you can save it and spend it on your house one day?

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Photo Of The Day

BFF's

“I Am His Hands. He Is My Eyes.”

Blind Mr Haixa scales a tree with the help of Mr Wenqi, so that he can find fresh cuttings to plant in the ground.

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