New Zealand has suspended approximately NZ$18.2 million (around $11 million) in funding to the Cook Islands due to concerns surrounding extensive new agreements the latter signed with China in February. These deals cover various sectors, including infrastructure, tourism, technology, and crucially, deep-sea mineral exploration.

Wellington, which has consistently been the Cook Islands' largest funding source, expressed feeling blindsided by these agreements. A representative for New Zealand's Foreign Minister, Winston Peters, stated that funding will remain on hold until the Cook Islands "takes concrete steps to repair the relationship and restore trust."

Amid rising apprehensions from US allies about China's influence in the Pacific, the spokesperson emphasized the importance of a "high trust bilateral relationship" in maintaining financial support. They reiterated New Zealand's hope for swift action to resolve existing concerns so that funding could resume as soon as possible.

In response, the Cook Islands government underscored its commitment to address these issues promptly, expressing appreciation for New Zealand's development assistance over the years. The Cook Islands' foreign ministry confirmed constructive dialogue is taking place to understand and alleviate New Zealand's concerns.

This funding freeze coincides with New Zealand Prime Minister Christopher Luxon’s official visit to China, where he is scheduled to meet with Chinese President Xi Jinping. Despite the potential diplomatic repercussions of this suspension, Peters' spokesperson remarked that they don't fear that Beijing would react negatively due to Wellington's "special relationship" with the Cook Islands.

China has been actively seeking to strengthen ties with small Pacific nations, generating unease among Western countries. The Cook Islands Prime Minister Mark Brown emphasized that the recent agreements are aligned with his country’s long-term interests and do not undermine their longstanding relationships with Australia or New Zealand.

The agreements prompted local protests on Rarotonga, the largest island in the Cook Islands, and sparked a vote of no confidence against Prime Minister Brown, which he ultimately survived. The Cook Islands has a unique "free association" arrangement with New Zealand, engaging in collaborative defense and foreign affairs support. Over the past three years, New Zealand has allocated NZ$194 million in funding to the Cook Islands. Notably, Cook Islanders hold New Zealand passports, with a significant diaspora of around 100,000 living in New Zealand and Australia.

These cultural ties between Cook Islands Māori and New Zealand Māori explain the strong reactions to the Cook Islands' agreements with China, which have raised suspicions of shifting allegiances. Prior to these deals, the Cook Islands had shown signs of wanting to assert independence, notably shelving plans for its own passport after public backlash last year.