Funding Freeze: New Zealand and Cook Islands' Diplomatic Strain

New Zealand has halted millions in funding to the Cook Islands, a decision driven by increasing unease over the islands' burgeoning relationship with China. The move underscores growing regional concerns about China's expanding sphere of influence in the Pacific.

Foreign Minister Winston Peters announced in early June the suspension of NZ$18.2 million earmarked for the 2025-26 core sector, citing a need for high trust in bilateral relations. New Zealand and Australia have grown cautious of China's presumed threats to their national security in the Pacific.

The Cook Islands responded, emphasizing their commitment to mending the partnership with New Zealand. Meanwhile, Prime Minister Luxon's visit to China is anticipated to address these delicate diplomatic matters with Chinese leadership.

(With inputs from agencies.)