China rejects NZ spy allegations as false

The NZSIS stated in its annual assessment that the Purple Mountain Observatory, which has close ties to the Chinese government, sought to install ground-based space infrastructure through a local company. The agency believes the company was likely unaware that the equipment could collect intelligence of military value. The NZSIS did not identify the New Zealand company involved or detail how the plan was thwarted.

In its Security Threat Environment 2026 assessment, released on Thursday, the NZSIS identified China as the only country it has detected conducting espionage "at scale" against New Zealand. NZSIS Director-General Andrew Hampton described the threat environment as "the most challenging of recent times," noting that the "malign behaviours and activities" observed over the past year are proving even more threatening for New Zealand due to its size and location.

The Chinese Embassy in New Zealand rejected the assessment, stating that bilateral ties were based on "mutual benefit and win-win cooperation" and had delivered trade, jobs and people-to-people exchanges. The embassy said the timing of the report was "no coincidence" and suggested it could itself be the product of foreign interference. It urged New Zealand to work with Beijing to deepen political trust and practical cooperation.

According to the agency, Beijing's national security laws could compel Chinese individuals and organizations to comply with intelligence requests, including handing over data or intellectual property. The NZSIS assessed that any data collected in the Purple Mountain case would have been willingly passed to the Chinese government. New Zealand's South Pacific location makes it a desirable site for systems that track satellites, space debris, and other scientific data. The agency also noted that foreign states are targeting New Zealand government agencies, companies, universities, and researchers for non-public information, technology, and intellectual property through methods such as cyber intrusions, recruitment of insiders, academic partnerships, and commercial intermediaries. Geopolitical rivalry, technology competition, foreign interference targeting diaspora communities, and the use of AI for disinformation are compounding these risks.