New Zealand has suspended NZ$18.2 million (US$11 million) in aid to the Cook Islands after revelations that the Pacific nation entered into sweeping agreements with China without prior consultation with Wellington.
The aid freeze follows a series of February announcements by the Cook Islands government detailing new partnerships with Beijing in areas including infrastructure, technology, tourism, and deep-sea mining. As the Cook Islands’ largest aid donor and defence partner, New Zealand said it was blindsided by the deals.
“Funding relies on a high-trust bilateral relationship,” said a spokesperson for New Zealand Foreign Minister Winston Peters, confirming that future aid will be withheld until the Cook Islands “takes concrete steps to repair the relationship and restore trust.”
In a measured response, the Cook Islands Foreign Ministry said it “highly values” New Zealand’s longstanding development support and remains committed to resolving the diplomatic tensions. “Constructive dialogue is ongoing,” the ministry added.
The suspension comes amid broader concerns among Western allies over China’s growing influence in the Pacific. Similar alarm followed China’s 2022 security pact with the Solomon Islands, which drew criticism from Australia, New Zealand, and the United States.
Cook Islands Prime Minister Mark Brown earlier defended the agreements with China, stating they align with his country’s “long-term interests” and do not signal a departure from traditional alliances with Wellington and Canberra. Nonetheless, the deals triggered protests in the capital, Rarotonga, and led to a failed no-confidence motion against Brown’s government.
China has denied any hostile motives behind the agreements.
The fallout is particularly sensitive given the Cook Islands’ “free association” with New Zealand, which includes shared defence arrangements and grants Cook Islanders New Zealand citizenship. While the Cook Islands has a population of around 15,000, more than 100,000 Cook Islanders reside in New Zealand and Australia.
The diplomatic rift highlights the growing tension Pacific nations face as they balance development needs with intensifying geopolitical rivalry.
New Zealand is pushing for a swift resolution, especially as Prime Minister Christopher Luxon is scheduled to meet with Chinese President Xi Jinping this week in Beijing.
