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There's nothing remotely weird about this. Canada's mint also produces notes and coins for dozens of other countries. It's a highly specialized, low-margin, business so lots of countries outsource it to outside vendors. In this circumstance, it just happens that the outside vendors are often governments and/or government owned/run corporations.
Yeah New Zealand's money is printed in Canada. Circulating cash and notes is an issue, but not nearly as much of an issue as the "digital" printing that happens via the central banks (Reserve Bank of New Zealand, in my case).
I want to believe that there would be a bit of oversight and process here for coin & note printing from a State-Owned Enterprise such as in the article, what benefit does China have in being caught printing low-value coins and notes on the side? If they get caught it would be a major loss of face.
Bigger issues would be technology leaks: printers and plates being "lost", etc.
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Would love to see a free market for minting coin and notes. i think
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