New Zealand freezes $11M for Cook Islands over China secret ties

Tensions between New Zealand and the Cook Islands have escalated after Wellington announced the suspension of NZ$18.2 million (US$11 million) in aid.

This move comes in response to revelations that the Cook Islands entered into several secretive agreements with China without prior consultation with its traditional allies.

New Zealand’s Ministry of Foreign Affairs and Trade confirmed that funding has been halted due to “a breakdown in trust.”

Cook Islands aid freeze applies to development assistance in infrastructure, healthcare, and education—critical sectors in the Cook Islands’ economy.

The controversy erupted in February when the Cook Islands publicly revealed broad partnerships with China.

These include cooperation in infrastructure, tourism, telecommunications, and deep-sea mining.

The announcement reportedly caught Wellington off guard, despite the Cook Islands being in a free association arrangement with New Zealand.

“Funding relies on a high-trust bilateral relationship,” said a spokesperson for New Zealand Foreign Minister Winston Peters.

“Until the Cook Islands takes concrete steps to restore trust and assure transparency, future disbursements are on hold.”

The Cook Islands government responded diplomatically.

In a statement, its Foreign Ministry emphasized the nation’s “deep appreciation” for New Zealand’s historic support and expressed commitment to addressing the current rift through “constructive dialogue.”

Prime Minister Mark Brown has defended the Chinese agreements, stating that they serve the Cook Islands’ long-term development goals.

He dismissed concerns that the deals signal a shift away from New Zealand or Australia, its primary allies.

Still, the agreements have sparked protests in Rarotonga and led to a failed vote of no confidence in Brown’s administration.

Critics within the Cook Islands accuse the government of risking sovereignty and transparency for quick economic gains.

The diplomatic fallout mirrors growing global concerns over China’s expanding footprint in the Pacific.

A similar 2022 pact between China and the Solomon Islands raised alarms in Australia, New Zealand, and the United States, who view increased Chinese influence as a potential security risk.

New Zealand’s freeze is particularly significant due to its special relationship with the Cook Islands.

The free association allows Cook Islanders to carry New Zealand passports and ensures shared defense responsibilities.

The situation remains fluid. Prime Minister Christopher Luxon is scheduled to meet Chinese President Xi Jinping later this week in Beijing.

Observers say the Cook Islands issue may factor heavily into the diplomatic agenda.

For now, Wellington’s message is clear: aid comes with accountability, and unchecked Chinese influence in the Pacific will not be tolerated.

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