KEY POINTS:
As the decision was made to make Qian Xun Xue's grandmother a legal guardian of the three-year-old, her newly found half-sister Grace Xue smiled and hugged her husband, relieved at the happy outcome for everyone.
The ruling - made yesterday afternoon by Principal Family Court Judge Peter Boshier - paved the way for the little girl to start a new life, three weeks after her mother was allegedly murdered by her father.
Madame Xiao Ping Liu is expected to take her granddaughter back to China within the next week but even though Qian Xun is leaving New Zealand, she will still have contact with Grace through phonecalls, emails, the exchange of photographs and possibly even visits back to New Zealand.
In making Madame Liu a guardian, Judge Boshier said the child's attachment to her grandmother was demonstrable.
"Give the indescribably sad events which have seen her abandoned and then deprived of her mother, I can think of no better solution than to permit her to now be nurtured and deeply loved by her grandmother."
He thanked Qian Xun's family for the way they co-operated and came to a decision about the child's future.
"You have my admiration and support. I share with you the deep anguish that your family, and all of us, are feeling."
Grace Xue was said to be "happy" with the way the hearing went and was looking forward to building a relationship with her half-sister and Madame Liu.
Qian Xun had been in the custody of social services since she was abandoned at a Melbourne train station by her fugitive father, Naiyin Xue, on September 15. A manhunt is now under way in America for the 54-year-old self-proclaimed martial arts expert after he allegedly murdered Qian Xun's mother, An An Liu, and dumped her body in their car outside their Auckland home.
The judge waved a requirement for Qian Xun's father to be notified of Madame Liu's guardianship but refused to go as far as terminating Xue's own rights, saying the child's immediate safety was secure. If Xue was located, his rights to his daughter could be dealt with at that stage.
Judge Boshier had earlier issued guidelines to media about what could and could not be reported at the hearing. While several restrictions remain in force under the Children, Young Persons and their Families Act, the judge allowed reporting of orders he made under the Care of Children Act 2004. He also opened up the Family Court hearing to media saying the case had generated a large amount of public interest and he wanted the public to see first-hand how decisions were made.
The orders
* Qian Xun's grandmother, Madame Liu, was granted guardianship of the child. Her fugitive father, Naiyin Xue, still has guardianship but that will be discussed again when he is found.
* Madame Liu was also granted a parenting order giving her day to day care of Qian Xun. Permission was also granted for Qian Xun to live in China.
* The parenting order also gave Qian Xun's half-sister, Grace Xue, rights to contact and visit her. Family Court gets the healing started