Foreign ownership

Nature

Foreign ownership refers to the control or possession of assets, companies, or land by individuals or entities based in another country. As a problem, it raises concerns about loss of national sovereignty, economic dependency, and reduced local control over strategic industries or resources. Critics argue that foreign ownership can lead to profit repatriation, diminished domestic investment, and potential threats to national security. Additionally, it may undermine local businesses and influence political decisions, prompting debates over regulatory measures and the balance between attracting foreign investment and protecting national interests.

Background

Foreign ownership emerged as a significant global concern in the late 19th and early 20th centuries, as colonial powers and multinational corporations acquired land, resources, and enterprises abroad. The issue gained prominence with post-colonial independence movements and economic globalization, prompting debates over national sovereignty, economic dependency, and cultural influence. Heightened scrutiny followed high-profile acquisitions in strategic sectors, leading to increased regulatory responses and international dialogue on balancing investment benefits with national interests.

Incidence

Foreign ownership has become a significant global phenomenon, with increasing shares of national assets, land, natural resources, and key industries being acquired by foreign entities. This trend is particularly pronounced in developing countries, where foreign direct investment often results in substantial control over local economies. The scale of foreign ownership raises concerns about economic sovereignty, local employment, and the distribution of profits, making it a matter of worldwide relevance.
In 2023, New Zealand faced public debate over the sale of large tracts of farmland to overseas investors, particularly from China and the United States. This sparked concerns about food security and the long-term impacts on rural communities.

Claim

Foreign ownership is only one aspect of the broader question of the rights of society in relation to individual resource owners and users. It raises the issue of public versus private ownership as a means of management, and confronts our basic assumptions on lifestyle and standard of living.

Foreign ownership troubles those who want a comfortable, assured life, it increases prejudice and fears, it threatens local pride and smooth operation of the economy, disturbs the public order, adversely affects the country's competitors, and may impair the safety of the general public.

It is easier for a French car-maker to close a factory in Belgium as part of a cost-cutting drive than it would have been to shut down an operation in France.

Counter-claim

Concerns about foreign ownership are vastly overblown and distract from real economic issues. In a globalized world, investment—regardless of origin—drives innovation, creates jobs, and strengthens economies. Focusing on the nationality of investors is outdated and xenophobic. Instead of fearing foreign ownership, we should welcome it as a sign of our country’s attractiveness and competitiveness. Worrying about this issue is a waste of time and energy better spent elsewhere.