Partner turns threat: New Zealand intelligence flags China as ‘most active’ security risk

New Zealand’s intelligence agency has issued a sharp warning about Beijing’s growing influence, identifying China as the “most active” foreign power attempting to interfere in the country’s politics, society, and businesses.

In its annual threat assessment released Thursday, the New Zealand Security Intelligence Service (NZSIS) said foreign states continue to target critical organisations, infrastructure, and technology to extract sensitive information, with China flagged as a particularly “assertive and powerful” actor.

The report noted that Beijing has shown both the “willingness and capability” to carry out intelligence activity undermining New Zealand’s national interests. While not all activity amounted to foreign interference, the agency stressed that China is deliberately seeking to expand its influence across New Zealand and the wider Indo-Pacific region.

“Some states, including China, Russia and Iran, are willing to engage in covert or deceptive activity in order to influence discussions and decisions, or gain access to technology and information that can help them meet these goals … New Zealand has been targeted by some of these activities,” the report said.

The report pointed out that the Indo-Pacific has become the main ground for strategic rivalry between global powers. In this competition, China is described as a “particularly assertive and powerful actor,” seeking to entrench its influence across the region, as per The Straits Times.

“It has demonstrated both a willingness and capability to undertake intelligence activity that targets New Zealand’s national interests,” the NZSIS said.

Reacting sharply, the Chinese Embassy in Wellington dismissed the findings as “unsubstantiated and groundless” and accused New Zealand of harbouring a “Cold War mentality.”

Beijing maintained it still regarded New Zealand as a friend and partner, but warned it would “take firm measures” to defend its interests if faced with “groundless attacks.”

At a regular news briefing, Mao Ning, a Chinese foreign ministry spokesperson, accused New Zealand’s intelligence and security agencies of “repeatedly spreading rumours” in recent years.

“China strongly opposes this,” she said, urging New Zealand to focus on actions in favour of the healthy and stable development of bilateral relations.

The country, part of the Five Eyes intelligence and security alliance, has increasingly amped up its rhetoric over the growing influence of China in the region and a rise in geopolitical tensions, and on Thursday said it would spend NZ$2.7 billion ($1.6 billion) to beef up its defence force.

Director-General of Security Andrew Hampton said the threats need to be taken much more seriously than they are currently.

“Our threat environment is deteriorating and that has a direct impact on our safety and security,” he said in a statement released alongside the report.

The report also pointed to the growing threat of violent extremism and said the most plausible attack scenario remains a lone actor who has been radicalised online.

“Grievances and polarising issues in the online information space are almost certainly driving support for a range of violent extremist ideologies within New Zealand,” the report noted.

With inputs from agencies