London Daily

Focus on the big picture.
Friday, Nov 07, 2025

One of the Five Eyes has blinked over China

One of the Five Eyes has blinked over China

New Zealand has defied the wrath of its Anglosphere allies to sign a big new trade deal with Beijing

China and New Zealand this week completed the ratification of their upgraded free-trade agreement, which will come into force in April. Although the deal was a long time in the works, it expands the number of tariff-free goods New Zealand is able to export into China, securing what is its largest market and a key source of income for its farmers.

The agreement comes despite the growing tensions between Beijing, the United States and its allies, with Washington seeking to put the brakes on China’s expanding economic ties with its allies, in a view towards strategic containment.

This has led to claims that New Zealand, a member of the Five Eyes Anglosphere intelligence alliance involving Australia, Canada, the United Kingdom and the United States, has not been sufficiently ‘loyal’ to their agenda. Jacinda Ardern's more cautious approach towards Beijing, as opposed to the absolutely relentless hostility to China seen in neighboring Australia, has seen her country mocked as ‘New Xi-land.’

So why is New Zealand acting differently to its partners when it comes to Beijing? And will the pressure to get it to take America’s side succeed?

New Zealand, for many reasons, is a country which is fundamentally different from the other Anglosphere nations; its world outlook is more moderate, less elitist and more progressive. While the other three countries, Australia, Canada and the United States, were once British colonies established through the near total, unapologetic destruction of indigenous inhabitants in the name of Anglo-Protestant settler supremacy, New Zealand was established as more of a compromise between the British and the native Māori population. The Maori were not entirely displaced, but instead remained a cultural and political force within the country.

In recent years, Maori culture has in fact been on the ascendency in New Zealand and unlike its Anglophone counterparts, the nation’s broader identity has absorbed it. This means that in foreign relations, New Zealand is less inclined towards the zealous imperialist and supremacist mindset seen in Washington, Canberra, London and Ottawa.

Wellington is considerably more peaceful and less contentious in its outlook, which in turn influences its attitude towards Beijing. As a nation of just five million people which relies significantly on agricultural exports, China’s market of 1.4 billion hungry mouths represents a trade bonanza that is simply not matched anywhere else in the world. Why, in such circumstances, should New Zealand subscribe to an aggressive anti-China agenda?

Yet for all intents and purposes New Zealand does, on paper, effectively take a side as part of the US-led security order in the Pacific, even if it is not considered a leading player or part of concentrated groups such as ‘The Quad’ strategic security grouping of the United States, India, Japan and Australia.

Whilst British and Australian media outlets are quick to accuse Ardern's New Zealand of being subservient to China owing to trade, this is misleading. One may note that New Zealand has banned Huawei from its 5G networks, that it still engages in naval military drills against China in areas such as the South China Sea, still puts its name to anti-China statements pursued at the United Nations and elsewhere, and so on. But, significantly, this is done in a non-aggressive, discrete and non-confrontational way.

It might be said that Wellington ‘follows’ the US agenda in its own moderate way, but does not attempt to lead or put its head above the pack needlessly. For example, New Zealand has somewhat embraced the Xinjiang-focused human rights discourse, but has notably avoided the ‘genocide’ accusation as pushed by the most aggressive Anglosphere politicians. Likewise, when the AUKUS deal to provide nuclear submarines for Australia was declared last year, Ardern announced such subs would be banned from its waters as part of its anti-nuclear stance.

These distinctions remind us that New Zealand’s foreign policy is not ‘pro-China’ as such, but a careful balancing act not to frame itself as an explicit enemy to Beijing in the way Australia has done, a move that resulted in China banning numerous exports from that country throughout 2020 and 2021. New Zealand, were it to follow suit, arguably has far more to lose as a much smaller nation.

Yet this also alludes to the underlying reality: that Wellington is part of an economic order which increasingly revolves around China, albeit while simultaneously being part of the US-led security order. Whilst these conflicting modes of existence have caused more discomfort in Australia, owing to its much stronger sense of Anglophone exceptionalism and historical embrace of ‘yellow peril’ rhetoric, New Zealand seems to be deftly riding out the balance.

The upgraded trade agreement with Beijing illustrates this existence isn’t going to change anytime soon. Wellington is also part of the 15-member Asia-Pacific Regional Comprehensive Economic Partnership that also incorporates China and commenced this year.

While talk of diversification in international trade is often thrown around, this is superficial and easier said than done, for there are no other markets the size of China’s. This is something that the US and some of its closer allies have been unwilling to face: Beijing is and will continue to be the economic heart of an entire region by the realities of size, geography and economics. No amount of denial can change that, however much America wishes it, as set out in its “Indo-Pacific” strategy.

This might mark one final distinction between Wellington and the rest of the Five Eyes states. Whilst the others are in denial, hostile towards a changing world where China is rising, and frantically trying to assemble strategies based on nostalgia or past glories, New Zealand, while still technically on their side, is more pragmatic and realistic about it all. It has not switched allegiances, yet it has few qualms or anxiety or hesitation about integrating and trading with China to its own benefit.

Newsletter

Related Articles

0:00
0:00
Close
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
UK Report Backs Generational Smoking Ban Ahead of Tobacco & Vapes Bill Review
UK’s Domino’s Pizza Group Reports Modest Like-for-Like Sales Growth in Q3
UK Supplies Additional Storm Shadow Missiles to Ukraine as Trump Alleges Russian Underground Nuclear Tests
High-Profile Broodmare Puca Sells for Five Million Dollars at Fasig-Tipton ‘Night of the Stars’
Wilt Chamberlain’s One-of-a-Kind ‘Searcher 1’ Supercar Heads to Auction
Erling Haaland’s Remarkable Run: 13 Premier League Goals in 10 Matches and Eyes on History
UK Labour Peer Warns of Emerging ‘Constituency for Hating Jews’ in Britain
UK Home Secretary Admits Loss of Border Control, Warns Public Trust at Risk
President Trump Expresses Sympathy for UK Royal Family After Title Stripping of Prince Andrew
Former Prince Andrew to Lose His Last Military Title as King Charles Moves to End His Public Role
King Charles Relocates Andrew to Sandringham Estate and Strips Titles Amid Epstein Fallout
Two Arrested After Mass Stabbing on UK Train Leaves Ten Hospitalised
Glamour UK Says ‘Stay Mad Jo x’ After Really Big Rowling Backlash
Former Prince Prince Andrew Faces Possible U.S. Congressional Appearance Over Jeffrey Epstein Inquiry
UK Faces £20 Billion Productivity Shortfall as Brexit’s Impact Deepens
UK Chancellor Rachel Reeves Eyes New Council-Tax Bands for High-Value Homes
UK Braces for Major Storm with Snow, Heavy Rain and Winds as High as 769 Miles Wide
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
×