New Zealand Suspends Funding to Cook Islands Amid China's Influence

Thu Jun 19 2025 17:04:22 GMT+0300 (Eastern European Summer Time)
New Zealand Suspends Funding to Cook Islands Amid China's Influence

Wellington halts millions in support due to concern over Cook Islands' deals with Beijing.


The suspension highlights growing apprehension among Pacific allies regarding China's expanding footprint in the region.

New Zealand has put a pause on its financial assistance to the Cook Islands as concerns mount over significant agreements made between the island nation and China. The decision to halt NZ$18.2 million (approximately $11 million) in funding came after New Zealand found itself "blindsided" by various deals initially struck in February, which encompass projects in infrastructure, tourism, technology, and notably, deep-sea mineral exploration.

A representative for New Zealand Foreign Minister Winston Peters indicated that the fresh funding would remain on hold until the Cook Islands can take visible steps to mend their relationship and restore mutual trust. "Funding relies on a high-trust bilateral relationship," stated a spokesman on Thursday, emphasizing New Zealand's desire for a quick resolution to the concerning situation.

The Cook Islands responded by affirming its intention to urgently address New Zealand's concerns. The island nation emphasized its long-standing appreciation for New Zealand's development aid, stating that "constructive dialogue is ongoing" and that it is committed to understanding and rectifying the issues at hand.

This funding suspension coincides with New Zealand Prime Minister Christopher Luxon's official visit to China, where discussions with Chinese President Xi Jinping are set to take place. Despite the potentially negative implications this move could have on relations with Beijing, Peters' spokesman reassured that there are no worries regarding how China may perceive the funding halt, referencing Wellington's "special relationship" with the Cook Islands.

The deals that have sparked tension were seen as part of China's broader strategy to engage with small but strategically important nations in the Pacific region. Concerns over China's increasing presence were also elevated following its security agreement with the Solomon Islands in 2022, which alarmed many Western allies.

Cook Islands Prime Minister Mark Brown previously defended the agreements with China as aligned with the nation's "long-term interests," emphasizing that such agreements do not compromise existing bonds with Australia and New Zealand. Nevertheless, these recent developments have prompted protests in the Cook Islands, notably on Rarotonga, and led to a no-confidence vote against Prime Minister Brown, which he managed to survive.

The Cook Islands maintains a "free association" arrangement with New Zealand, providing collaborative support in defense and foreign affairs. Over the past three years, New Zealand has allocated NZ$194 million to the Cook Islands, creating significant interconnection, as Cook Islanders hold New Zealand passports, with a large expatriate community living in New Zealand and Australia.

The proposed agreements with China are indicative of the Cook Islands' desire to assert greater independence, despite previous indications to the contrary leading to public discontent, such as the abandonment of a plan to introduce an independent passport.

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