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New Zealand's Prime Minister Christopher Luxon on Thursday said millions of dollars in funding for the Cook Islands would be suspended while his government examines the "breadth and content" of agreements with China.
Luxon, who is visiting China for the first time this week, said the Cook Islands was not transparent about the scope of its strategic partnership with Beijing.
"We've suspended some of the aid money until we can get clarity on those issues," he said in Shanghai.
The funding pause amounts to a $11 million development assistance payment for the next financial year, according to government figures. New Zealand is the biggest provider of financial support for the Cook Islands.
The Cook Islands' China deals
The funding pause is part of larger friction between New Zealand, Australia and smaller Pacific island nations that China is approaching with partnership agreements as Beijing works on expanding its influence in the Pacific.
In February, the Cook Islands surprised New Zealand by signing a Comprehensive Strategic Partnership agreement with China on deep-sea mining, regional cooperation and economic issues.
The agreement did not include security cooperation, but it did allow for more China-funded infrastructure projects.
The Cook Islands was formerly part of the Colony of New Zealand. Today, it is self-governing and currently has a "free association" relationship New Zealand, sharing a military and passports. New Zealand also provides the Cook Islands with budgetary assistance, and advises on foreign affairs and defense.
Cook Islanders can also freely work and live in New Zealand, which heightened security concerns after the agreement with China was signed.
China's plan to dominate the seas
A Chinese Foreign Ministry spokesperson said Thursday that "both New Zealand and the Cook Islands are important partners of China," adding that the strategic partnership agreement was not intended to antagonize New Zealand.
"China-Cook Islands cooperation targets no third party, nor should it be interfered with or constrained by any third party," Beijing said.
Cook Islands Prime Minister Mark Brown said in February that the agreement with Beijing did not "replace our longstanding relationships with New Zealand, Australia and others, but rather complements them, ensuring that we have a diversified portfolio of partnerships."
New Zealand Prime Minister Luxon is due to meet Chinese President Xi Jinping this week.
New Zealand seeks more 'trust'
The funds in question are part of a larger raft of $116 million (€101 million) in aid provided by New Zealand to the Cook Islands over the past three years under its free association agreement and earmarked for health, education and tourism sectors.
A spokesperson for New Zealand Foreign Minister Winston Peters said Thursday said the Cook Islands' agreements with China demonstrated a "a gap in understanding" between the governments "about what our special relationship of free association requires."
"New Zealand has therefore paused these payments and will also not consider significant new funding" until the Cook Islands government "takes concrete steps to repair the relationship and restore trust," the spokesperson's statement said.
Edited by: Zac Crellin
