New Zealand has put a hold on millions of dollars in development funding to the Cook Islands due to a series of unexpected agreements made by the island nation with China. As the largest supporter of the Cook Islands, New Zealand expressed surprise over these deals that span across key areas like infrastructure, technology, and deep-sea mining exploration, which were finalized back in February.
The funding freeze, amounting to NZ$18.2 million (about $11 million), will persist until the Cook Islands demonstrate "tangible steps" to mend the relationship and rebuild trust, according to a spokesperson from New Zealand's Foreign Office. The pause is reflective of growing concerns among US allies regarding China's expanding influence in the Pacific.
"In funding, trust is essential," emphasized the spokesperson, urging swift actions from the Cook Islands to alleviate these concerns. The Cook Islands government responded, stressing its commitment to urgently addressing the matter and valuing New Zealand's historical development aid.
Additionally, the timing of New Zealand's funding suspension coincides with Prime Minister Christopher Luxon's official visit to China, where discussions with Chinese President Xi Jinping are set to take place. Despite potential strains in relations, New Zealand officials remain undeterred about China's perception of their actions, maintaining a "special bond" with the Cook Islands.
These agreements with China are considered part of a wider strategy by Beijing to strengthen ties with small yet strategically important Pacific nations. In recent history, this aligns with a controversial security deal signed with the Solomon Islands, which raised alarms among Western allies. The Cook Islands' Prime Minister, Mark Brown, assured neighboring countries that these partnerships are designed with the Cook Islands' long-term interests in mind and do not overshadow their enduring relationships.
The Cook Islands has faced internal challenges regarding these deals, including protests and political pushback, but remains focused on constructive negotiations with New Zealand to resolve the issues. With a unique "free association" arrangement, New Zealand deeply engages in the Cook Islands' defense and foreign matters. In the past three years, it has contributed NZ$194 million in funding, reinforcing the close ties as many Cook Islanders also hold New Zealand passports. Despite the turmoil, leaders stress the importance of maintaining interconnectedness and dialogue for the future welfare of the region.
