Bright Food’s A$1.5 billion ($1.9 billion) tilt at CSR’s sugar business, including New Zealand’s Chelsea Sugar, is a taste of things to come as China looks to acquire assets in the Australasian resources and food sectors, market sources say.

However, finding accessible opportunities is likely to prove more difficult on this side of the Tasman.

Commentators have noted that Shanghai-based Bright Food’s potential offer for CSR’s sugar division shows China’s pursuit of hard assets, previously focused on mining and resource companies, has now spilled into Australia’s wider economy.

The spending spree is backed by China’s Government, which is reported as viewing investment in hard assets as an attractive use for its US$2.3 trillion ($3.1 trillion) in foreign currency reserves, rather than US Government debt securities.

Investment adviser and market commentator Arthur Lim characterises the most recent and visible Chinese investments in New Zealand - whiteware giant Haier’s investment in Fisher & Paykel Appliances and Beijing-based Agria’s investment in PGG Wrightson last year - as opportunistic rather than strategic.

But what is very clear, looking at the CSR investment as well as other investments the Chinese have targeted in Australia, is that they are cash rich.

“They are consciously looking to use that money to secure access to resources as well as positioning themselves in areas where they feel there are benefits for Chinese companies to be able to access expertise and technology.

“That’s where I think in New Zealand the focus will be.”

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