New Zealand halts Cook Islands funding over China row
WELLINGTON—New Zealand has suspended millions of dollars in budget funding to the Cook Islands, it said on Thursday, as the relationship between the two constitutionally-linked countries continues to deteriorate amid the island group’s deepening ties with China.
A spokesperson for Foreign Minister Winston Peters said in a statement that New Zealand had decided in early June to suspend payment of NZ$18.2 million ($11.0 million) in core sector support funding for 2025-26 as this “relies on a high trust bilateral relationship.”
New Zealand and Australia have both become increasingly cautious about China’s growing presence in the Pacific region and the potential threat it poses to their national security.
In January, New Zealand also halted new development funding to the Republic of Kiribati, an island in Micronesia.
‘Restore trust’
We “will also not consider significant new funding until the Cook Islands government takes concrete steps to repair the relationship and restore trust,” the spokesperson said.
“New Zealand hopes that steps will be taken swiftly to address New Zealand’s concerns so that this support can be resumed as soon as possible.”
The Cook Islands Ministry of Foreign Affairs and Immigration said in a statement the country is committed to restoring its high-trust relationship with New Zealand and appreciated the funding support received from Wellington.
News of the freeze comes as New Zealand’s Prime Minister Christopher Luxon is in China and ahead of a meeting with Chinese President Xi Jinping and Premier Li Qiang on Friday.
