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Monday 23/02/2026

New Zealand Suspends Aid to Cook Islands Amid Controversial China Deals

Flags of New Zealand and Cook Islands with a map of the Pacific
Ethan BrooksEthan Brooks

In This Article

HIGHLIGHTS

  • New Zealand has paused NZ$18.2m in funding to the Cook Islands due to deals the latter made with China, covering infrastructure and deep-sea mineral exploration.
  • The funding halt reflects growing concerns among US allies about China's influence in the Pacific region.
  • Cook Islands Prime Minister Mark Brown emphasized that the funding is "paused" and expressed commitment to restoring relations with New Zealand.
  • New Zealand Prime Minister Christopher Luxon is currently visiting China, adding complexity to the diplomatic situation.
  • The Cook Islands have a "free association" relationship with New Zealand, sharing military and passport ties, which underscores the significance of the funding pause.

New Zealand has suspended NZ$18.2 million in aid to the Cook Islands following the latter's agreements with China, which have raised concerns about Beijing's growing influence in the Pacific. The funding freeze, announced by a spokesperson for New Zealand Foreign Minister Winston Peters, highlights the increasing tension between the two nations, which share a "free association" relationship involving military and passport ties.

Diplomatic Strain Over China Deals

The Cook Islands' agreements with China, signed in February, encompass infrastructure, tourism, technology, and deep-sea mineral exploration. These deals have alarmed New Zealand and other US allies, who view China's expanding presence in the Pacific with caution. "Funding relies on a high trust bilateral relationship," Peters' spokesperson stated, emphasizing the need for the Cook Islands to take steps to restore trust.

Prime Minister Mark Brown of the Cook Islands has downplayed the significance of the funding pause, asserting in parliament that it is not a permanent halt. He reiterated his government's commitment to addressing New Zealand's concerns and maintaining their longstanding relationship.

Regional Implications and Political Context

The timing of the funding suspension coincides with New Zealand Prime Minister Christopher Luxon's official visit to China, where he is scheduled to meet President Xi Jinping. This visit adds a layer of complexity to the situation, as New Zealand navigates its diplomatic ties with both the Cook Islands and China.

The Cook Islands' foreign ministry has expressed its determination to resolve the issue swiftly, acknowledging the importance of New Zealand's development assistance. The funding in question is part of a broader NZ$200 million package provided over the past three years, supporting key sectors such as health, education, and tourism.

Historical and Cultural Ties

The Cook Islands, with a population of approximately 15,000, have deep historical and cultural connections with New Zealand. Many Cook Islanders hold New Zealand passports, and the two nations share a unique constitutional relationship. This backdrop underscores the significance of the current diplomatic rift and the urgency to mend ties.

WHAT THIS MIGHT MEAN

The suspension of aid to the Cook Islands could have significant implications for regional politics in the Pacific. If the Cook Islands fail to address New Zealand's concerns, it may lead to a prolonged diplomatic standoff, potentially affecting other Pacific nations' relations with China. Experts suggest that New Zealand's decision might encourage other regional powers to reassess their strategies in dealing with China's influence.

On the other hand, successful negotiations could restore the high-trust relationship between New Zealand and the Cook Islands, setting a precedent for how Pacific nations balance their ties with larger powers. As Prime Minister Luxon engages with Chinese leaders, his diplomatic maneuvers will be closely watched for indications of New Zealand's broader foreign policy direction in the region.