New Zealand has suspended NZ$18.2 million (U.S. $10.8 million) in budget funding to the Cook Islands amid growing tensions over the island nation’s deepening ties with China and concerns over a lack of transparency.

New Zealand halted core sector support funding for the Cook Islands for 2025-26, citing the need for a high-trust bilateral relationship that has been strained by the Cook Islands’ increasing partnership with China.

The suspension follows concerns over inadequate consultation on agreements the Cook Islands signed with Beijing, particularly in areas excluding security cooperation.

New Zealand demands concrete steps to restore trust before resuming financial support. The move comes amid Prime Minister Christopher Luxon’s visit to China, where he is expected to raise issues about China’s growing influence in the Pacific.

The Cook Islands affirmed its commitment to repairing relations with New Zealand and reiterated the longstanding partnership on security and defence.

Experts warn that using aid as leverage could backfire by pushing Pacific nations closer to China.

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