As New Zealand deepens its ties with Western powers like Australia, the U.S., and other Five Eyes partners, Prime Minister Chris Luxon has acknowledged the challenges of maintaining a balanced relationship with China, New Zealand’s largest trading partner.
“China remains New Zealand’s biggest trading partner and a country of undoubted influence, and a country with which we want to work to find solutions to shared challenges,” he said at the Lowy Institute on Aug. 15.
However, he notes that differences mean there are issues where the two countries cannot align.
Luxon referenced the government’s decision to publicly name a Chinese state-backed entity responsible for a cyber-attack on the New Zealand Parliament.
“The difference in values and systems of government mean there are issues on which we cannot and will not agree,” Luxon said.
“Where we disagree, we will raise our concerns privately and also, when necessary, publicly in a consistent and predictable manner.”
He also highlighted New Zealand’s focus on the Indo-Pacific, where military tensions are rising, particularly in the South China Sea and the Taiwan Strait.
“It’s a disturbing reality that we talk less today of the Indo-Pacific as the engine room of global economic growth and activity, and more as the locus of concerning flash points, including North Korea’s provocative actions and breaches of UN Security Council resolution, the militarisation of disputed features and unsafe encounters in the South China Sea, [and] increasing tension in the Taiwan Strait,” he said.
“Military expansion and modernisation continue at a scale not seen in our region for more than half a century.”
In response, Luxon has taken an assertive stance on New Zealands’s foreign policy.
He emphasised that his government “is bringing more energy, more urgency, and a much sharper focus to our external engagement,” by strengthening military and security ties.
This approach comes as he describes the current global landscape as “deteriorating more rapidly than at any time in our lifetimes.”
“We see tectonic shifts are unfolding in the global distribution of power, economic heft and strategic influence, old orders being upended,” Luxon said, noting that New Zealanders sometimes “perceive themselves as being buffered by splendid isolation.”
However, he warned, “There is no opting out from today’s strategic realities.”
“We see states willing to abandon diplomacy for war as they seek to alter the status quo, most blatantly the illegal and unprovoked invasion of Ukraine by a permanent member of the UN’s Council.”
New Zealand has contributed nearly 100 personnel to train Ukrainian infantry, a move Luxon framed as part of a broader commitment to upholding international rules.
Working With Allies
In addition, Luxon noted that he had joined Canadian PM Justin Trudeau, and Australian PM Anthony Albanese in putting out three joint statements in the last nine months.“Each of these is a clear enunciation of our views on the Middle East. And each of these is a great example of how we three are stronger when we actually project to the world together,” he said.
“A return to a world where raw power is the primary determinant in advancing states’ interests would be a very harsh world indeed, particularly for small states like New Zealand.
“Since [the] Oct. 7, the Middle East has faced new waves of instability, starting with Hamas’ deadly terror attacks, then the devastating conflict in Gaza, where an immediate ceasefire is urgently needed.”
He said New Zealand was also strengthening its ties with the U.S.
“We’re doing more together in our Pacific region; we are working with the U.S. to build resilience,” he said.
“Another example is a contribution to the collective effort under U.S. leadership to counter Houthi attacks in the Red Sea and restore the important principle of freedom of navigation.”
On the subject of AUKUS, Luxon confirmed New Zealand’s interest in cooperating with Australia and the U.S. on advanced technologies, though he admitted that the specifics of this collaboration are still being defined.
“We are very positively open to exploring it,” he said.
“But we need to understand what that would mean for New Zealand, particularly in the context of a defence capability review.”
While New Zealand is not involved in pillar one of AUKUS, which involves nuclear submarines, it is interested in pillar two, which would see it cooperating with Australia and the U.S. on advanced technologies.
As New Zealand navigates these complex relationships, Luxon emphasised the importance of working with trusted allies.
“The foundation of our foreign policy reset is our collaboration with long-standing partners who we know best and with whom we have deep reservoirs of trust,” he said.
This includes a strong commitment to Australia, highlighted by the fact that Luxon has visited the country three times in less than a year.
