Each year, thousands flock to the untouched beaches and clear, blue waters of the South Pacific’s Cook Islands. This tourism is vital, supporting a small nation of 15 islands and atolls where structures never overshadow the height of a coconut tree.
For generations, New Zealand, the Cook Islands’ former colonial power, has been a close ally and the source of most visitors. However, a chilly dispute has recently emerged between the two.
This rift stems from a broad partnership deal the Cook Islands recently finalized with China. New Zealand sees this agreement as another move in China’s growing regional influence, causing significant concern.
New Zealand responded by freezing millions in aid, creating a budget deficit for the Cook Islands. In turn, Prime Minister Mark Brown indicated his nation might seek infrastructure funding from other sources. Critics have accused New Zealand of using aid as leverage, leading to unusual protests on Rarotonga, the primary island, from residents worried about straining relations with New Zealand.
Image: The picturesque resort area of Rarotonga, the largest island in the Cook Islands, captured in 2012.
Despite a recent face-to-face meeting between the leaders at a regional summit last week, a resolution remains elusive.
“Their decision to enter into these agreements with China marked a significant shift, and we were completely unaware,” New Zealand’s foreign minister, Winston Peters, stated in a recent interview.
Image: Foreign Minister Tingika Elikana of the Cook Islands, alongside his Chinese counterpart, Wang Yi, during a meeting in Xiamen, China, in May.
New Zealand asserts that the Cook Islands should have consulted them before finalizing the agreement, declaring that no new aid will be provided until trust is re-established. However, Prime Minister Brown highlighted that New Zealand itself signed a major partnership with China in 2014, securing billions in economic benefits, without seeking consultation from the Cook Islands.
Over the past decade, New Zealand’s apprehension about China’s regional ambitions has intensified. Beijing has employed aggressive trade tactics against Australia, conducted intercontinental ballistic missile tests in the Pacific, and deployed a naval task force for live-fire exercises in the waters separating Australia and New Zealand.
Mr. Peters remarked that China’s agreement with the Cook Islands aligns with a discernible pattern of Beijing’s expanding regional aspirations.
Officials from New Zealand confirmed that diplomats from both nations are meticulously reviewing the Cook Islands’ agreement with China to address specific concerns.
The frozen funds, totaling 18.2 million New Zealand dollars (approximately $11 million), were allocated for health, education, and tourism. New Zealand’s Ministry of Foreign Affairs and Trade confirmed that a separate $3 million in cybersecurity aid is still being disbursed.
Experts describe New Zealand’s decision to halt aid as unprecedented, contrasting sharply with Australia’s approach of significantly boosting its regional aid contributions.
The Cook Islands has been self-governing since 1965, yet it depends on New Zealand for defense. Most Cook Islanders, roughly 85,000, reside in New Zealand and hold its passports. China’s growing presence in the Pacific is now straining the long-established boundaries of this relationship.
Image: A bustling tourist market on Rarotonga, the main island, in June. The majority of visitors are from New Zealand.
In 2022, China finalized a security pact with the Solomon Islands, another small Pacific nation, sparking concerns that Beijing sought a military presence in the area. Both Chinese and Cook Islands authorities, however, assert that their current agreement is solely non-military and non-security related.
Earlier this year, New Zealand’s intelligence head cautioned that China’s growing engagement in the Pacific aims to blend economic and security cooperation, potentially fostering rival regional power structures. China’s embassy in Wellington dismissed these claims as misinformation, insisting there’s no hidden agenda behind the Cook Islands agreement.
David Capie, director of the Centre for Strategic Studies at Victoria University of Wellington, clarified that New Zealand’s concerns are clearly rooted in Beijing’s perceived escalating military aspirations in the region.
“In a different strategic context, such partnerships were acceptable. With other partners, it was likely also fine,” he observed. “However, the strategic landscape has now fundamentally shifted.”
As one of the smallest Pacific island nations, the Cook Islands has also become a flashpoint in the burgeoning competition over seabed mining. Its agreement with China includes commitments for joint exploration of marine minerals. Just last month, the United States also secured its own deal with the Cook Islands regarding seafloor mining.
Rashneel Kumar, editor of Cook Island News, who first reported New Zealand’s aid freeze, noted that, like many small Pacific island nations grappling with development and climate change, his country seeks assistance from any available source. Visible throughout Avarua, the capital, are structures like the courthouse, police headquarters, and national stadium — all constructed by China.
“There’s a clear sentiment of gratitude for China’s assistance in certain sectors,” he explained. “Yet, the prevailing view is that we must be cautious about our international partnerships.”