New Zealand spy report calls out China for interference

New Zealand's spy service branded China a "complex intelligence concern" Tuesday and warned the Pacific nation was vulnerable to foreign interference.

In an annual threat report, the New Zealand Security Intelligence Service said several countries were undertaking "malicious activity" on its shores, but called out China's attempts as "complex and deceptive".

In particular, Beijing was accused of using front organizations to connect with local groups to replace authentic and diverse community views with those approved by the ruling party.

In one example, a Chinese-language community news outlet parroted Beijing's talking points, it said.

"These front organizations will often appear to be community-based... but their true affiliation, direction and funding sources are hidden," the report said.

The unusually blunt language comes as New Zealand's recently elected centre-right government tilts the country's foreign policy more closely toward traditional Western allies.

This comes after years of growing economic ties with China -- New Zealand's biggest trade partner.

In March, Wellington publicly said a Chinese state-sponsored group was behind a 2021 malicious cyber attack that infiltrated sensitive government computer systems.

China dismissed allegations of hacking and accused New Zealand critics of being puppets of Washington.

Asked Tuesday about the spy report, Beijing said it would "never interfere in the internal affairs of any other country".

"We hope the New Zealand side will maintain a rational and objective understanding of China, and create favourable conditions for the development of healthy, stable relations between the two countries," said foreign ministry spokesperson Mao Ning.

- 'Manage them' -

New Zealand's spy agency said the country's geographical position and role in the Pacific region made it "vulnerable" to other countries striving for greater influence.

That included Russia, which "likely monitors the public statements and social media accounts" of people.

In another case, an unnamed country contacted a local New Zealand council and offered to pay for a community event if they agreed to restrict a particular religious group.

Andrew Hampton, Director-General of Security, said the report aimed to be upfront about threats facing the country.

"The point is not to alarm anyone but to alert New Zealanders to the threats so that we can work together to manage them," he said.

Earlier this year, New Zealand Prime Minister Christopher Luxon said the country could no longer depend on the "splendid isolation" provided by its geography.

China remains New Zealand's biggest trading partner -- exporting dairy, meat and wood products that exceeded NZ$21.39 billion (US$13.2 billion), according to the most recent official data.

Luxon has warned that although China was "a country of undoubted influence", different values mean "there are issues on which we cannot and will not agree".