The High Court ruling that put the sale of the farms to Chinese interests at least on hold is making headlines everywhere from the Wall Street Journal, the Washington Post and Financial Times to the ABC and the BBC and news outlets throughout Australia [where foreign land purchases is a very topical issue] and South East Asia.

It has already been reported that the decision is being seen by the Chinese as racist and reactionary. The company itself says it is astounded by the decision. It also said it remained resolute in its bid to buy the farms.

BNZ economist Tony Alexander summed the situation up as being completely confusing to overseas investors and inconsistent in light of other sales to foreigners.

It is a new interpretation of the Overseas Investment Act that is bound to have far reaching consequences.

Prime Minister John Key says the different test to be applied could mean few such sales in the future.

There are obviously concerns in the Beehive that foreign investors will be deterred and the Government will be hoping the OIO comes back reconfirming its decision.

If that happens there will be an enormous public backlash, so whatever happens, National has a serious problem.

Another pressing question is why bother with ministerial sign-off at all when the Government says it will accept whatever the OIO comes up with the next time.

The decision may well have been made by the time this editorial appears but whatever happens, things will never be the same again.

The most optimistic viewpoint would be that there will be more certainty in future decisions.

While this is not the first challenge to an OIO ruling, it is the first one to be successful. An appeal by the Government is highly unlikely but there is certain to be some rewriting of the law in an attempt to ameliorate some of the fallout overseas.