New Zealand halts aid to Cook Islands over China deals
New Zealand "paused" the payments and would not resume them until the Cook Islands took "concrete steps" to restore trust, a spokesman for Foreign Minister Winston Peters said in a statement.
The self-governing Cook Islands, a country of 17,000 people, has a "free association" relationship with its former colonial ruler New Zealand, which provides budgetary assistance as well as help on foreign affairs and defence.
Cook Islands caught New Zealand off guard in February when it signed a Comprehensive Strategic Partnership agreement with China covering deep-sea mining, regional cooperation and economic issues.
Peters' spokesman pointed to the "lack of consultation" surrounding the "agreements signed by the Cook Islands and China" as a reason for the aid pause.
"Trust and meaningful engagement are fundamental to free association," he said.
New Zealand provided US$116 million (NZ$194 million) to the Cook Islands over the past three years, according to government figures.
It has paused a planned US$11 million development assistance payment for the next financial year.
"New Zealand will also not consider significant new funding until the Cook Islands Government takes concrete steps to repair the relationship and restore trust," Peters' spokesman said.
"New Zealand hopes that steps will be taken swiftly to address New Zealand's concerns so that this support can be resumed as soon as possible."
The pause in funding comes as New Zealand's Prime Minister Christopher Luxon is scheduled to meet with Chinese President Xi Jinping in Beijing on Friday.
Speaking to reporters on Thursday morning, Peters said the funding pause was not timed to coincide with Luxon's trip to China.
Peters said he discussed New Zealand's concerns about the Cook Islands agreement during a meeting with China's Foreign Minister Wang Yi earlier this year.
Cook Islands Prime Minister Mark Brown did not immediately respond to a request for comment.
Brown survived a no-confidence vote in February over the deal with China, blaming "misinformation" from New Zealand for destabilising his country.
"It becomes very clear this is not about consultation. This is about control," he said at the time.
Former Australian diplomat Mihai Sora said Cook Islands was being "a bit cute."
"And it's not surprising that New Zealand has reacted in such a way," the Lowy Institute analyst told AFP.
"New Zealand obviously wants to repair its relationship with Cook Islands. It wants to block China from gaining increased strategic access to the Cook Islands, but also essentially to its immediate neighbourhood.
"But if Cook Islands pushes closer to China in a way that threatens New Zealand's national security, it's really not possible to have such intimate ties."
New Zealand also announced this year it would review aid to climate-threatened Pacific nation Kiribati, one of China's closest friends in the region.
The review came after Kiribati's president brushed off a planned meeting with Peters at the last minute.
"This was especially disappointing because the visit was to be the first in over five years by a New Zealand minister to Kiribati," Peters' office said at the time.
"For this reason, we are reviewing our development programme in Kiribati."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
38 minutes ago
- The Star
Stephane Maquaire appointed as new president, CEO of Club Med
PARIS, July 21 (Xinhua) -- Stephane Maquaire has been appointed as the new president and chief executive officer of Club Med Holding, succeeding Henri Giscard d'Estaing, the company's board of directors announced Monday. According to a press release issued by Club Med, a company specializing in all-inclusive resort services, a key criterion in the succession process was the continued pursuit of the Group's international expansion strategy while preserving its French roots and long-standing core values. Maquaire is expected to build on the current strategy while guiding the company to seize new opportunities in a fast-evolving travel and hospitality landscape, the company stated. For his part, Maquaire said that he was honoured by the opportunity to lead the renowned Club Med into its next chapter of success. In 2015, Chinese conglomerate Fosun completed the acquisition of Club Med, which at the time was facing operational challenges. Former French Prime Minister Jean-Pierre Raffarin has described the investment as a positive development not only for the Chinese investor, but also for the French tourism sector. Since the acquisition, Club Med has grown rapidly and now operates over 70 resort villages in approximately 40 countries. Describing him as a leader with deep experience in the consumer sector and a remarkable international track record, Xiaoliang Xu, co-CEO of Fosun International and Chairman of Club Med Holding, said Maquaire is ideally positioned to accelerate Club Med's momentum and write the next chapter of its extraordinary story. Club Med has also seen significant growth in China. According to Fosun, China became the company's second-largest source market in 2024, with 310,000 visitors recorded across its 11 resorts in the country.
New Straits Times
4 hours ago
- New Straits Times
Liverpool to sign Hugo Ekitike in £69m deal: Reports
LONDON: Liverpool have agreed to sign Eintracht Frankfurt striker Hugo Ekitike in a deal worth an initial £69 million (US$92 million), according to reports on Monday. The Premier League champions switched their focus to Ekitike following Newcastle's refusal to sell Sweden striker Alexander Isak, who is valued at around £150 million by the Magpies. Newcastle and Manchester United were also interested in Ekitike, but Liverpool look set to win the race for one of Europe's hottest young stars. It is believed the Reds have agreed to pay a potential further £10 million in add-ons to sign the 23-year-old Frenchman, whose overall price tag could reach £79 million. Once the transfer is completed, Ekitike will link up with Arne Slot's side on their pre-season tour of Asia. Ekitike scored 22 goals in 48 games in all competitions for Frankfurt last season after joining the Bundesliga club from Paris Saint-Germain. He was an unused substitute during his side's pre-season friendly against FSV Frankfurt on Saturday, with Eintracht boss Dino Toppmoller admitting Ekitike's impending departure was "a bitter loss." Liverpool have an opening in their forward line after Diogo Jota's recent death in a car crash in Spain. The Reds are also believed to be willing to sell Uruguay striker Darwin Nunez, while Colombia forward Luis Diaz has been the target of a rejected bid from Bayern Munich. Liverpool have already splashed out £116 million on Germany playmaker Florian Wirtz, as well as signing defenders Jeremie Frimpong and Milos Kerkez from Bayer Leverkusen and Bournemouth respectively. Georgia goalkeeper Giorgi Mamardashvili has also linked up with Arne Slot's side since the end of last season after agreeing his move from Valencia in 2024.--AFP
New Straits Times
5 hours ago
- New Straits Times
Jho Low reportedly living in luxury in China under unofficial protection
KUALA LUMPUR: Fugitive financier Low Taek Jho, better known as Jho Low, is reportedly living in luxury in China under unofficial protection, according to fresh claims by investigative journalists Bradley Hope and Tom Wright. Speaking in their podcast, Finding Jho Low, which aired on Friday, the authors of Billion Dollar Whale revealed that Low is allegedly residing in Shanghai's upscale Green Hills neighbourhood and operating under a forged Australian passport using the alias "Constantinos Achilles Veis." They claimed that former Prime Minister Datuk Seri Najib Razak had allegedly advised Low to flee the country as scrutiny of the 1Malaysia Development Bhd (1MDB) scandal intensified, prompting him to escape to China where he had familial ties in the Chiuchow region. "Despite being a fugitive, he is living comfortably, driving luxury cars and accompanied by Chinese security guards. It appears he is not under house arrest but enjoying an unrestricted life," Hope said in the podcast. Hope and Wright, who spent years tracking Low's global movements, also alleged that Malaysia lost as much as US$6 billion (RM28 billion) in Belt and Road Initiative-linked projects that were engineered with Low's involvement, mirroring the pattern of financial manipulation seen in the 1MDB scandal. Among the most revealing claims was that Low had allegedly cultivated ties with high-ranking Chinese political figures and intelligence officers, positioning himself as a "shadow broker" who influenced Malaysia's foreign policy tilt towards Beijing. The podcast also highlighted how Low allegedly played a role in corrupt infrastructure deals such as the East Coast Rail Link (ECRL) project, which involved bribes to Chinese officials, including former deputy public security minister Sun Lijun, who was later jailed for corruption. A turning point in the investigation came in 2019 when a photo of Low at Shanghai Disneyland surfaced. Analysts said the image helped identify his close-knit circle and added weight to claims that he is under unofficial protection by Chinese authorities. Hope and Wright suggested that Low has rebranded himself in China as a "dark arts coordinator," helping Chinese companies navigate complex regulatory environments, especially when dealing with the United States. "He is not just hiding. He is actively helping Chinese entities operate in hostile geopolitical terrain. That makes him valuable," Wright said. The journalists also claimed that Low had maintained an office at the Shanghai World Financial Centre, further suggesting he was actively engaged in financial or strategic work, rather than merely evading law enforcement. Much of the information shared in the podcast came from undisclosed documents and confidential sources, which the journalists said they could not reveal due to safety concerns. These revelations challenge earlier assumptions that Low was under house arrest or moving covertly from one location to another. Instead, they paint a picture of a man who remains influential and protected within a powerful foreign system. Law enforcement agencies, including those in Malaysia and the United States, may now have to recalibrate their approach in seeking Low's return as calls grow louder for accountability in the multibillion-dollar corruption scandal.
