Christopher Luxon, the leader of the opposition in New Zealand, has dismissed allegations that his party's proposal for a multibillion-dollar road network to be financed by Chinese money may put the nation in a debt trap.
In its election platform released this week, the conservative party promised that, if elected to power in the general election in October, it will spend NZ$24 billion (US$14.6 billion) on public infrastructure, including the construction of substantial expressways and transportation networks, according to South China Morning Post.
Sovereign Wealth Funds Show Interest in NZ's Projects
Luxon said a "lot of sovereign wealth funds" have shown interest in the projects, and he was "absolutely" open to investing Chinese money in them to ensure New Zealand had a contemporary and dependable infrastructure.
Luxon promoted the plan as a way to lessen traffic and increase revenues.
Luxon added that the National Infrastructure Agency of the party would decide whether to allow Chinese laborers to enter to construct the roads.
According to him, "They will really work with partners to develop the right sort of financing and the right sort of partner for the right sort of project."
The former chief executive of Air New Zealand, who assumed leadership of the party in 2021, downplayed worries about luring Chinese investment to the Pacific, where prior infrastructure projects have reportedly led to the emigration of Chinese employees and burdened island governments with debt.
Luxon claimed to be in contact with possible investors, including pension funds from Canada and Australia.
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A Lack of Budget?
Chris Hipkins, the prime minister and leader of Labour, called Luxon's road-building frenzy a "la-la land dreaming" and claimed the anticipated budget fell billions short.
People in New Zealand who use social media have accused the Luxon party of "selling" the nation to foreign investors and enforcing its "perpetual debt" to China.
A memorandum of understanding on the Belt and Road Initiative has also been inked between Beijing and New Zealand, which has long been regarded as a moderate voice on China's expanding involvement in the South Pacific.
Hipkins met with Chinese President Xi Jinping in June and supported the country's application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, as well as their agreement to improve their economic ties.
According to a survey conducted last month, New Zealand was likely to have a hung parliament following the election in October as support for both the National Party and the ruling Labour Party declined, favoring a number of smaller opponents.
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