Explainer | China or NZ?: The Cook Islands' Tough Decision on Global Partner
- Public Policy Club
- Oct 7
- 5 min read
Updated: Oct 14
Written by Max Liebmann
2025 has been a year of tough decisions for the Cook Islands. After signing an agreement with China, the self-governing territory of New Zealand stoked some controversy after failing to disclose information about it to its constitutional partner, New Zealand.
The backlash from this decision led to the withdrawal of planned aid by New Zealand, but the high demand for foreign investors to fund a slew of infrastructure plans means it is difficult to see if they will cede to New Zealand’s demands, or look elsewhere.
The Cook Island’s Need for Investment
So why would the Cook Islands be party to an agreement that would so clearly antagonise its closest partner? This is because the Cook Islands is looking to make some changes.
In July, the Cook Islands’ Deputy Prime Minister cited a series of infrastructure programmes, including transport and buildings, valued at $650 million as the need for the funds (Tairi, 2025).
Furthermore, post-COVID migration out of the country has led the Cook Islands to seek foreign companies and investment to rejuvenate the weakening local services.
In addition to these, the Cook Islands is among a series of Pacific nations seeking to pre-empt the burgeoning impact of climate change. At the Pacific Infrastructure Conference in Brisbane this year Pacific nations, including the Cook Islands, sought foreign investment to aid in the construction of climate resistant infrastructure (Barton, 2025).
It is these primary drivers of policy in the Cook Islands that has led their government to conclude that change to their present infrastructure needs to be made in a big way, and that is not achievable without offshore investors.
The Most Recent Sources of Investment in the Cook Islands
In attempting to get investment to satisfy their financial shortcomings, the Cook Islands has sought aid from a variety of sources.
The Cook Islands’ newest partner is the United States. As recently as 2023 the Cook Islands formalised its diplomatic relationship with America (Mika, 2025). After a series of negotiations their relationship only seems to have further growth potential, with the Americans showing interest in tourism, economic promotion, and introducing private entities to the Islands.
Regarding new partners, the Cook Islands’ most notable, and most controversial, is China. This year the Cook Islands became party to a ‘memorandum of understanding’ with China. This agreement includes China’s pledge to manufacture wharves, ports, and ships to facilitate growth in the marine sector; a 5-year agreement for seabed and mineral exploration; and nothing of a security nature (Crimp, 2025). This would seek to not only grow the economy in the face of post-COVID population loss but also garner funding for the future infrastructure projects the Cook Islands’ dreams for itself.
The Cook Islands Oldest, Now Most Frustrated, Partner – New Zealand
New Zealand remains the Cook Islands’ oldest partner, having been in a state of free association together since August 1965.
Under their constitutional arrangements New Zealand’s responsibilities include foreign affairs, disaster response, and defence. The Cook Islands maintains responsibility for its own governance (Vailala, 2025).
Despite this seeming distance in affairs, New Zealand has been the Cook Islands’ largest donor. Between 2021 and 2024 New Zealand invested $19.2 million in funding; and it was this scale of funding that resulted in New Zealand making up 63.1% of the Cook Islands’ donor support in the 2025/2026 financial year (Fuatai, 2025).
However, this flow of support has been disrupted by the Cook Islands’ agreement with the Chinese. The Minister of Foreign Affairs Winston Peters decided the ‘breadth and content’ of the deal was a violation of their constitutional arrangements and used the agreement as a reason to withhold $18.2 million in funds (Associated Press, 2025).
Although the Cook Islands has claimed that the agreement with China was not an attempt to antagonise New Zealand (Associated Press, 2025), this attempt to dispel any notion of ill intentions has not mitigated New Zealand’s response.
In defence of his government’s diplomacy, Cook Islands Prime Minister Mark Brown has said that any claims about secrecy from his government regarding foreign dealings is hypocritical of the New Zealand Government (Fuatai, 2025). The Prime Minister pointed to a $60 million trade and immigration deal New Zealand recently signed with the Chinese that his government received no notice of (Tairi, 2025). Brown says that if the New Zealand government does not have to notify the Cook Islands of their diplomatic negotiations, there is no need for his government to fulfil similar obligations.
These tensions have given rise to questions over how the relationship can proceed with the Cook Islands needing funding for their future projects, and the New Zealanders remaining steadfast in their resolve against Chinese interference.
How Will They Go Forth?
The New Zealand government has made a series of demands of the Cook Islands before they reconsider going forth with any future funding.
Winston Peters has demanded that the Cook Islands restore trust in the relationship before any funds are reactivated (Associated Press, 2025).
Peters also recommended that if the Cook Islands wanted to take greater control of its affairs that Prime Minister Brown call a referendum to vote on remaining in the free association agreement (Fuatai, 2025).
Some bodies in the Cook Islands have also spoken against this seeming departure from New Zealand. Former Cook Islands Deputy Prime Minister Norman George not only criticised the deal with China but called for greater involvement from New Zealand in the Cook Islands’ education and healthcare. However, whether this desire is echoed by the rest of the population is yet to be seen. New Zealand Prime Minister Christopher Luxon said that for a reassessment of the relationship he would require an indication of greater support from Cook Islanders (‘Vailala, 2025).
Despite this staunch resistance to designate funds from the New Zealand government, this has not translated to a complete cut off of ties between the two. As recently as September the Royal New Zealand Air Force dispatched a team of 30 personnel, largely engineers, to engage in an annual humanitarian mission funded by the New Zealand Ministry of Foreign Affairs (“New Zealand Defence Force Supports Key Infrastructure in Cook Islands”, 2025). However, this team was accompanied by Australians, Fijians, Tongans, and ni-Vanuatus, so whether this was planned too far in the past to be called off, or if it is a genuine step towards reconciliation is difficult to tell.
Right now, it is unclear how the Cook Islands will proceed. Despite a notable willingness to maintain the historically close free association agreement with New Zealand, the Cook Islands is fully aware that it needs foreign investors to meet its infrastructure plans. Only time will be able to tell which avenue they choose.
References
Associated Press. New Zealand halts millions of dollars in aid to Cook Islands over deals struck with China. (2025, 19 Jun). The Guardian. https://www.theguardian.com/world/2025/jun/19/new-zealand-halts-millions-of-dollars-in-aid-to-cook-islands-over-deals-struck-with-china
Barton, F. Cook Islands seeks partners to bridge ‘obvious shortfall’ in infrastructure budget. (2025, 21 August). Cook Islands News.
Crimp, Lauren. Cook Islands deal opens up Pacific to China - Expert. (2025, 23 February). RNZ. https://www.rnz.co.nz/news/political/542733/cook-islands-deal-opens-up-pacific-to-china-expert
New Zealand Defence Force Supports Key Infrastructure in Cook Islands. (2025, September 24). Tagata Pasifika. https://tpplus.co.nz/pacific-region/new-zealand-defence-force-supports-key-infrastructure-in-cook-islands/
Fuatai, T. New Zealand pressed Cook Islands for Months over China Deals, OIA documents reveal. (2025, September 2). RNZ. https://www.rnz.co.nz/news/pacific/571752/new-zealand-pressed-cook-islands-for-months-over-china-deals-oia-documents-reveal
Mika, T. United States eyes deeper ties with Cook Islands, help businesses form ties. (2025, August 11). RNZ. https://www.rnz.co.nz/news/pacific/569638/united-states-eyes-deeper-ties-with-cook-islands-help-businesses-form-ties
Tairi, T. Cook Islands PM: “If we can’t get help from NZ, we will go somewhere else’. (2025, July 23). RNZ. https://www.rnz.co.nz/news/pacific/567773/cook-islands-pm-if-we-can-t-get-help-from-nz-we-will-go-somewhere-else
Vailala, A. Former Cook Islands Deputy PM call on NZ to reclaim control over health and education. (2025, 20 May). RNZ. https://www.rnz.co.nz/news/pacific/561529/former-cook-islands-deputy-pm-calls-on-nz-to-reclaim-control-over-health-and-education
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