New Zealand halts Cook Islands funding over China ties

New Zealand has suspended millions of dollars in budget funding to the Cook Islands, it said on June 19, as the relationship between the two constitutionally linked countries continues to deteriorate amid the island group's deepening ties with China.

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WELLINGTON - New Zealand has suspended millions of dollars in budget funding to the Cook Islands, it said on June 19, 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 (S$14.1 million) in core sector support funding for 2025-2026 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 threat it poses to their national security.

In January, New Zealand also halted new development funding to the Republic of Kiribati, an island in Micronesia.

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.

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.