London Daily

Focus on the big picture.
Monday, Oct 19, 2026

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
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
Labour Party Instructs Local Council Groups to Sever Power-Sharing Accords with Green Party Over New Controversial Policy Positions
Institute for Fiscal Studies Warns of Thirty-Five Billion Pound Fiscal Gap Ahead of Chancellor John Healey Upcoming Autumn Budget
House of Lords Backs Landmark Legislative Amendment to Decriminalize Abortion Across England and Wales
United Kingdom Defence Secretary Wes Streeting Travels to Pentagon for High-Level Strategic Talks Amid Escalating Tensions Over Ukraine and United States Policy Shifts
Bank of England and International Monetary Fund Officials Issue Urgent Warnings Regarding Potential Artificial Intelligence Financial Market Shocks
Reform UK Faces Severe Political Fallout and Scrutiny After Undercover Media Investigations Reveal Systemic Racism Among Candidates
Former Democratic Unionist Party Leader Jeffrey Donaldson Sentenced to Fifteen Years in Prison Following Landmark Child Sexual Abuse Trial
House of Lords Votes to Amend Schools Bill Implementing Comprehensive Social Media Ban for Children Under Sixteen Years of Age
International Monetary Fund Upgrades United Kingdom Growth Forecast for Two Thousand Twenty-Six While Warning of Energy-Driven Inflation Pressures
Competition and Markets Authority Launches Formal Inquiry Into Corporate Artificial Intelligence Partnerships
Automotive Industry Leaders Urge Westminster to Accelerate Electric Vehicle Charging Infrastructure Rollout
Home Office Expands Digital Border Security Framework With Mandatory Electronic Travel Authorizations Across United Kingdom
Northern Ireland Executive Reaches Final Consensus on Public Sector Pay Reform and Budget Allocations
Welsh First Minister Secures Additional Funding for Rural Agricultural Transition and Sustainable Farming Schemes
Scottish Government Unveils Accelerated Regional Infrastructure Strategy to Boost Clean Energy Manufacturing
National Health Service England Launches Emergency Recruitment Drive to Alleviate Severe Acute Care Winter Backlogs
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Reductions Amid Persistent Wage Growth
British Government Finalizes Emergency Energy Support Package to Protect Households From Winter Price Surges
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
Department for Transport Demands Safety Audits Following Regional Rail Disruptions
House of Lords Scrutinizes Amendments to Armed Forces Bill
Devolved Administrations in Scotland and Wales Criticize Post-Brexit Funding Framework
Prime Minister Andy Burnham Defends Middle East Military Support Under Parliamentary Scrutiny
NHS Leaders Warn of Severe Pressure on Hospitals from Winter Virus Outbreaks
Retailers and Business Groups Lobby Chancellor for Relief from Rising Employment Taxes
City of London Taskforce Urges Radical Reform to Prevent UK From Becoming "Incubator Nation"
Bank of England Officials Signal Potential November Interest Rate Hike
Institute for Fiscal Studies Warns of £35 Billion Funding Gap in Upcoming Autumn Budget
IMF Upgrades UK Growth Forecast to 1.3% for 2026
Former UUP leader Jeffrey Donaldson sentenced to 15 years in prison for historical child sex offences
UK ministers adopt independent commission blueprint to fast-track AI in the NHS
Labour leadership orders local councillors to end power-sharing deals with Green Party
UK government considers regulatory intervention in proposed Sky and ITV merger
Environment Agency declares severe drought across six English regions as reservoirs hit critical lows
NHS England issues new guidance prohibiting transgender women from female-only wards
Norwegian teenager sentenced to 20 years for part of Iran-backed assassination plot in Britain
UK government threatens complete visa ban on Eritrea over refusal to accept deportees
UK Treasury lobbies UBS to move global headquarters to London amid banking sector tax threats
×