NZ takes harder line on China than Australia, raising questions

Summary

An article published by the Lowy Institute in Australia on 13 August noted that New Zealand's intelligence agencies have increasingly named China directly in recent years, adopting a tougher stance than Australia. Chen Hong, director of the New Zealand Studies Centre at East China Normal University, described this as 'compensatory toughness' and 'identity anxiety'. The New Zealand Security Intelligence Service's annual report claims China is the only country found to have conducted large-scale espionage activities, and it has continued to highlight 'Chinese intelligence activities' over the past four years.

Additionally, Foreign Minister Peters made inappropriate remarks last month, and four MPs visited Taiwan, prompting China to take lawful countermeasures.

Commentary

The New Zealand Security Intelligence Service has repeatedly cited China, while the Foreign Minister's remarks and MPs' visits to Taiwan have strained bilateral ties. As China is New Zealand's largest trading partner, accounting for about a quarter of exports, companies such as Fonterra depend heavily on the Chinese market. A tougher stance could invite retaliatory measures from Beijing, similar to the setbacks Australia faced in wine and barley exports after its disputes with China.

Small and medium-sized enterprises should be wary of political risks affecting exports of dairy, timber, meat and other goods. Some firms, however, may see this as a chance to diversify supply chains and reduce reliance on China. The interplay between security alliances and economic interests is testing the risk management capabilities of New Zealand's SMEs.

Keywords: New Zealand, China policy, Five Eyes, espionage allegations, compensatory toughness, identity anxiety, intelligence agency, Peters, countermeasures

Source: The Paper