The annual threat report, titled “New Zealand’s Security Threat Environment”, points a finger at several nations for malicious activity within the Pacific nation. However, with an attempts were singled out as especially sophisticated, with the SIS warning that Beijing’s efforts have the potential to undermine New Zealand’s sovereignty, reported the SCMP.

New Zealand, a member of the Five Eyes intelligence-sharing network alongside the United States, United Kingdom, Australia, and Canada, is increasingly entangled in the intensifying U.S.-China rivalry. The report’s release seems carefully timed, coinciding with the nation’s ongoing deliberations on how to navigate the complexities of this geopolitical competition.

“We are not alone in facing the threat of foreign interference,” the report states, noting that the issue is a global one. It also highlights that these activities, though prevalent, are notoriously difficult to trace directly back to foreign states. New Zealand’s Director General of Security, Andrew Hampton, reiterated that while transparency is key, the intent is “not to alarm the public.”

The threat of foreign interference has loomed large in New Zealand for some time, with the most notable incident surfacing in March 2024. That’s when the New Zealand government raised concerns over a cyber-attack allegedly carried out by Chinese state-sponsored hackers in 2021. The attack targeted the country’s Parliament, revealing the vulnerability of even well-protected democratic institutions.

At the time, similar cyber espionage activities by China were also condemned by both the U.S. and the UK, bringing into sharp focus the effectiveness of Five Eyes intelligence collaboration. New Zealand and Australia joined the chorus of accusations against China, further isolating Beijing on the global stage. In this context, New Zealand’s security services now paint a picture of a nation increasingly susceptible to foreign interference from authoritarian states like China.

Prime Minister Christopher Luxon has made no secret of the fact that his government is recalibrating its foreign policy. While China remains New Zealand’s largest trading partner—New Zealand exports dairy, meat, and wood products worth NZ$21.39 billion (US$13.2 billion) annually—the economic benefits are weighed against emerging national security risks. Luxon remarked earlier this year that the nation could no longer afford the “splendid isolation” that geography once provided, signaling a shift toward greater alignment with Five Eyes partners. He also warned that while China is a “country of undoubted influence,” differences in values mean there are issues on which “we cannot and will not agree.”

One of the most striking revelations in the SIS report was the disclosure that seven New Zealand citizens had provided training to China’s military in recent years, a situation labeled as a “major national security risk” by Andrew Hampton. These individuals, formerly employed in the New Zealand Defence Force or related industries, allegedly passed on knowledge and skills acquired through their roles in Western military operations. The timing and scope of this disclosure suggest a growing sense of urgency among New Zealand’s intelligence agencies.

The report also highlights that New Zealand’s exposure to foreign interference is not limited to cyber-attacks. The country’s openness, combined with its smaller size, makes it an attractive target for influence operations from nations like China. The Indo-Pacific region, where New Zealand has cultivated deeper ties with countries such as India and Southeast Asian nations, has become a key arena of geopolitical competition.

New Zealand is not alone in voicing these concerns. Over recent years, Australia, the United States, and the United Kingdom have all accused China of using state-sponsored hacking groups—like Advanced Persistent Threat 40 (APT40) and APT31—to target democratic institutions worldwide. In New Zealand’s case, the government’s response has been to increase cooperation with its Five Eyes allies, while urging China to refrain from cyber espionage activities.

For a country that has traditionally favored diplomacy over confrontation, New Zealand’s frank language about China is notable. This hardening of tone reflects not just a regional shift but also a global one, as more countries grapple with the implications of China’s rising technological and military power. The SIS report underscores that foreign interference is a growing concern, and New Zealand’s pivot toward aligning more closely with its Five Eyes partners signals a fundamental shift in its approach to both security and diplomacy.

As New Zealand navigates these treacherous waters, the challenge lies in balancing the economic benefits of its relationship with China while safeguarding its sovereignty in an increasingly complex and competitive geopolitical landscape.