WELLINGTON, New Zealand — New Zealand has suspended millions of dollars in aid to the Cook Islands due to concerns over the scope and nature of the Pacific nation’s recent agreements with China, officials confirmed Thursday.
A spokesperson for Foreign Minister Winston Peters said New Zealand — the Cook Islands’ largest donor — will not approve any new funding until its concerns are addressed and the relationship improves. The decision follows a series of deals signed between the Cook Islands and China earlier this year, which Wellington views as a potential challenge to its long-standing partnership with the self-governing territory.
Speaking in Parliament on Thursday, Cook Islands Prime Minister Mark Brown characterized the situation as a “pause” rather than a halt, and minimized the impact of the funding freeze. However, the move highlights growing tensions across the Pacific, where countries like Australia and New Zealand have become increasingly wary of China’s expanding influence in the region.
The freeze, amounting to NZ$18.2 million (US$11 million), was quietly revealed in a government budget document and brought to public attention by a local news outlet. It comes at an awkward time for New Zealand Prime Minister Christopher Luxon, who is currently in China on his first official visit and is scheduled to meet with President Xi Jinping.
China has previously defended its partnership with the Cook Islands, insisting that the agreements are not intended to provoke or undermine New Zealand.
The financial holdback became more apparent this week when the Cook Islands’ Public Accounts Committee expressed concern over a NZ$10 million (US$6 million) drop in government funding. The affected money was part of “core sector support” provided by New Zealand for vital services like healthcare, education, and tourism — all subject to auditing by Wellington.
Over the past three years, New Zealand has provided more than NZ$200 million in aid to the Cook Islands under a decades-old free association compact. Under the terms of this partnership — now nearly 60 years old — the Cook Islands is self-governing but shares military, citizenship, and diplomatic responsibilities with New Zealand. The arrangement requires the Cook Islands to consult with Wellington on international agreements that could affect New Zealand’s interests.
The latest agreements with China appear to be the most serious test of that understanding to date. While the deals do not include military cooperation, they do promise increased Chinese investment in infrastructure and scholarships for Cook Islands citizens. Not all of the documents have been released publicly.
Officials in Wellington became increasingly uneasy after learning of the full extent of the deals signed by Brown in February, particularly given the Cook Islands’ strategic position and its sizable exclusive economic zone. Brown’s government is also exploring potential deep-sea mining projects, adding further geopolitical weight to the developments.
Although no direct security cooperation with Beijing has been announced, the lack of transparency and the growing Chinese presence have raised national security concerns in New Zealand — especially considering the free movement of Cook Islanders to and from New Zealand.
