New Zealand Freezes Funds to Cook Islands Over China Agreements

Mon Aug 18 2025 15:53:26 GMT+0300 (Eastern European Summer Time)
New Zealand Freezes Funds to Cook Islands Over China Agreements

Development assistance paused amid rising concerns over China's influence in the Pacific.


Wellington has stopped millions in development aid to the Cook Islands due to undisclosed agreements made between Rarotonga and Beijing, prompting a commitment to rebuild trust from both sides.

New Zealand has halted its substantial funding assistance to the Cook Islands over recent agreements made by the island nation with China. These agreements, established in February, encompass areas such as infrastructure, tourism, technology, and deep-sea mineral exploration. The New Zealand government, which is the Cook Islands' primary funding source, expressed surprise and concern upon learning of these deals.

The funding suspension amounts to NZ$18.2 million (around $11 million) and will remain effective until the Cook Islands undertakes significant measures to rebuild trust in their bilateral relations, as stated by a spokesperson for New Zealand's Foreign Minister, Winston Peters. The spokesperson emphasized that funding hinges on maintaining a high-trust relationship and encouraged the Cook Islands to swiftly address New Zealand's concerns regarding its dealings with China.

In response, the Cook Islands government affirmed its intention to manage the situation urgently, highlighting its appreciation for New Zealand's developmental contributions over the years. They assured that discussions are ongoing and that they are keen on understanding and resolving New Zealand's apprehensions.

This funding freeze takes place as New Zealand Prime Minister Christopher Luxon is on an official trip to China, scheduled to meet with Chinese President Xi Jinping. While there may be worries about how Beijing might perceive this funding pause, Peters' spokesperson underscored the strong historical ties between New Zealand and the Cook Islands.

The agreements with China have drawn attention from Western allies, including New Zealand and Australia, reflecting rising apprehension about China's expanding influence in the Pacific region. Earlier, in 2022, China's security deal with the Solomon Islands sparked alarm among Western nations.

Cook Islands Prime Minister Mark Brown has defended the deals with China as aligning with his nation's long-term interests, assuring neighboring Australia and New Zealand that such agreements do not undermine established relationships. Such significant decisions have stirred public dissent in Rarotonga and even led to a parliamentary vote of no confidence against Brown, which he managed to survive.

New Zealand's relationship with the Cook Islands is categorized as a "free association," covering matters of defense and foreign policy. In recent years, New Zealand has invested NZ$194 million in the Cook Islands, with a considerable population exchange, as many Cook Islanders live in New Zealand or Australia. Due to the cultural connections shared between Cook Islands Māori and New Zealand Māori, the recent pivot towards China has triggered a strong and immediate response from both nations. Furthermore, the Cook Islands demonstrated an inclination to distance itself from New Zealand earlier that year by abandoning plans for a separate passport following public outcry.

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