China has rejected allegations that it is carrying out espionage in New Zealand on a large scale, accusing the country’s intelligence authorities of reviving a Cold War-style approach to relations between Wellington and Beijing.
The dispute follows the release of New Zealand’s annual Security Threat Environment 2026 assessment, which identified China as the only country detected conducting espionage in the country “at scale”.
Chinese Embassy Denounces Report
China’s embassy in Wellington strongly disputed the findings, accusing New Zealand’s Security Intelligence Service of exaggerating and manufacturing allegations of Chinese interference.
In a statement issued on Friday, the embassy said legitimate exchanges and cooperation with China were being portrayed as espionage or foreign interference.
It also claimed that some accusations were completely unfounded.
The embassy further alleged that unnamed forces, both within New Zealand and overseas, were attempting to undermine relations between the two countries.
New Zealand Warns of Growing Foreign Threats
The intelligence assessment said China remained the most active foreign interference actor operating in New Zealand.
It also warned that espionage and covert activities by foreign governments were becoming increasingly common, particularly efforts aimed at obtaining sensitive technology, influencing government policy and collecting valuable information.
The assessment forms part of New Zealand’s annual evaluation of the security threats facing the country.
Beijing Questions Timing of Assessment
China also took issue with the timing of the report, suggesting its publication was not accidental.
The embassy argued that the assessment itself could potentially reflect outside influence, while calling on New Zealand to avoid confrontation and instead strengthen political trust and practical cooperation with Beijing.
Chinese officials maintained that the relationship between the two countries should be based on mutual benefit and what they described as win-win cooperation.
Trade Ties Add Weight to Dispute
Despite growing security concerns, China remains New Zealand’s largest trading partner.
Bilateral commerce has reached record levels in recent years, supporting extensive economic activity and people-to-people exchanges.
Beijing pointed to those links as evidence of the broader benefits of the relationship and urged Wellington to protect and deepen cooperation rather than allow security disagreements to damage bilateral ties.
Relations Face a Delicate Balancing Act
The latest dispute highlights the increasingly difficult balance New Zealand faces between maintaining strong economic relations with China and responding to concerns about foreign interference and national security.
While Beijing has dismissed the allegations as politically motivated and unfounded, New Zealand’s intelligence assessment signals that officials continue to regard Chinese espionage and covert influence as a significant security challenge.
The competing positions are likely to add further pressure to a relationship that remains economically important to both countries while becoming increasingly sensitive on security issues.
