Advertisement
New Zealand
AsiaAustralasia

New Zealand suspends US$11 million Cook Islands funding over China deal

Wellington urged its neighbour to ‘take concrete steps to repair the relationship and restore trust’

Reading Time:3 minutes
Why you can trust SCMP
8
Cook Islands Prime Minister Mark Brown (left) with Chinese Premier Li Qiang in Harbin on February 14. Photo: Xinhua
Reuters
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 (US$11 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 threats it poses to the country’s national security. In January, New Zealand also halted new development funding to the Republic of Kiribati, an island in Micronesia.
Advertisement

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.”

Advertisement

The Cook Islands Ministry of Foreign Affairs and Immigration (MFAI) 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.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x