By AFP | 2025-08-22

New Zealand's spy service August 21 warned that China is the most active power engaging in foreign interference in the country, sparking a sharp rebuke from Beijing.

New Zealand faces the "most challenging national security environment of recent times," the country's intelligence agency said in an annual risk assessment.

Key drivers of the deteriorating threat environment are less stable relationships between states, deepening polarization and growing grievances.

Though several states seek to manipulate New Zealand's government and society, China remains the "most active," the New Zealand Security Intelligence Service said.

China's embassy in Wellington accused the agency of sowing suspicion and "poisoning the two countries' relations."

New Zealand's spy agency specifically identified China's United Front Work Department as engaging in foreign interference to build influence outside China.

'Deceptive, coercive'

Not all of its activity amounted to foreign interference, and some could be beneficial, it said.

"However, its activities are regularly deceptive, coercive and corruptive and come with risks for New Zealand organizations."

Under China's national security legislation, individuals and organizations in China must comply with requests from Chinese security services, the agency cautioned New Zealand businesses.

The Indo-Pacific region is a focal point for strategic competition among powers, the security service said.

China is a "particularly assertive and powerful actor," seeking to extend and embed its influence across the region, the report said.

"It has demonstrated both a willingness and capability to undertake intelligence activity that targets New Zealand's national interests."

Without naming countries, the intelligence service highlighted the routine use of "transnational repression" by foreign states, who often co-opt residents to collect information about someone within their own diaspora living in New Zealand.

Looking at other risks, the agency said the most plausible extremist threat in New Zealand remains that of a lone actor, radicalized in an increasingly polarized, grievance-laden online world, who attacks without forewarning.

The young and vulnerable are at the highest risk of radicalization, it said.

Undetected espionage

It is "almost certain" that some foreign espionage is going undetected, the agency said.

Foreign countries are targeting critical organizations, infrastructure and technology, primarily through cyber exploitation, it said.

"It is not just intelligence officers conducting this activity," the agency said.

"Some governments take a 'whole of state approach' to intelligence gathering, which includes utilizing businesses, universities, think tanks, or cyber actors to act on their behalf."

Global competition and insecurity drive most of the espionage activity against New Zealand, it said.

The service cited "multiple examples" of states seeking covert access to information on government policy positions, security partnerships, technological innovations and research.