New Zealand has suspended millions of dollars in funding to the Cook Islands due to a series of broad agreements the Cook Islands has reached with its Pacific neighbor, China. These agreements cover infrastructure, tourism, technology, and potentially crucial deep-sea mineral exploration, raising concerns in New Zealand.
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06-23, 2025As the Cook Islands' largest provider of funds, Wellington has stated it was caught off guard by these agreements reached in February of this year. A spokesperson for New Zealand Foreign Minister Winston Peters said that no new financial assistance would be considered until the Cook Islands takes "concrete steps to repair the relationship and rebuild trust."
The suspension of funds, totaling NZ$18.2 million (approximately US$11 million), comes at a time when U.S. allies, including New Zealand and Australia, are increasingly concerned about China's growing influence in the Pacific region. Peters' spokesperson stated on Thursday: "Financial assistance relies on a high-trust bilateral relationship."
The spokesperson added: "New Zealand wants to see swift action to address New Zealand's concerns so that this support can be reinstated as soon as possible." The Cook Islands responded by saying it is "determined to urgently address [the issue]," adding that it "highly values" New Zealand's development assistance over the years.
The Cook Islands Ministry of Foreign Affairs said in a statement: "Constructive dialogue is ongoing, and the Cook Islands remains committed to working closely with New Zealand to understand their concerns and how to address them." Meanwhile, New Zealand Prime Minister Christopher Luxon is on a formal visit to China and will meet with Chinese President Xi Jinping on Friday.
Peters' spokesperson stated that he is not concerned that Beijing may view the move negatively, noting the "special relationship" between Wellington and the Cook Islands. The agreements with the Cook Islands are part of a broader effort by China to court small but strategically important Pacific nations. Previously, Beijing signed a security pact with the Solomon Islands in 2022, which alarmed Western nations.
Cook Islands Prime Minister Mark Brown said in February that the agreements with China were based on the country's "long-term interests" and sought to assure its neighbors, Australia and New Zealand, that the agreements would not supplant their "long-standing relationships." China has also stated that the agreements are not intended to antagonize anyone in the region.
The agreements sparked protests in Rarotonga (the Cook Islands' largest island) and triggered a vote of no confidence against Brown in parliament, which he ultimately survived. New Zealand has a so-called "free association" relationship with the Cook Islands and provides assistance in defense and foreign affairs. According to government data, Wellington has provided NZ$194 million in funding to the Cook Islands over the past three years.
Cook Islanders also hold New Zealand passports. Approximately 15,000 Cook Islanders live in their own country, but as many as 100,000 live in New Zealand and Australia. Culturally, the Cook Islands Māori, who make up the majority of the population, are closely related to, but distinct from, New Zealand Māori. These close ties explain why the initial agreements between the Cook Islands and China have provoked such a strong reaction.
However, even before this, the Cook Islands had shown signs of wanting to break away. Late last year, it abandoned a proposal to launch its own passports after strong public protests.
