New Zealand's government has for the second time approved the sale of 16 dairy farms to Chinese investors.

The sale, the first to Chinese investors, was initially approved by the government in January but ran into a firestorm of opposition as well as legal action by a consortium of local farmers and businessmen. A New Zealand judge in February ordered the government to review the sale using stricter criteria.

Maurice Williamson, the land information minister, said today that after the review he remains convinced the sale meets all legal obligations.

The sale is to Shanghai Pengxin, which has said it will spend more than 200 million New Zealand dollars (US$163 million) to buy and improve the 7,900 hectares of farmland.