China rejects New Zealand Spy allegations as false amid bilateral tensions

China has formally dismissed and rejected allegations from New Zealand's latest security assessment claiming that Beijing is conducting extensive espionage within the country.

As reported by Reuters, the controversy follows New Zealand's Security assessment report, which pointed to China as a primary intelligence concern.

The allegation appeared in the agency's Security Threat Environment 2026 assessment, released on Thursday, which said China was the only country New Zealand had detected conducting espionage "at scale."

The Chinese Embassy in Wellington rejected the claims on Friday, characterizing them as entirely groundless and "fabricated," arguing that the reports are influenced by a Cold War mindset designed to impair bilateral ties.

The embassy said in a statement, "False allegations against China either smear normal exchanges and cooperation as so-called espionage or interference, or are entirely groundless and fabricated out of thin air."

Dismissing the allegations, China said bilateral ties were based on "mutual benefit and win-win cooperation" and had delivered trade, jobs and people-to-people exchanges.

The intelligence agency's 2026 assessment, which is released annually said China remained the most active foreign-interference actor in New Zealand, while warning that espionage and covert efforts by foreign states to acquire sensitive technology, influence policy and gather information were becoming more common.

The embassy said the timing of the report was "no coincidence" and suggested it could itself be the product of foreign interference.

China is New Zealand's largest trading partner, with two-way trade reaching record levels in recent years, the embassy urged New Zealand to work with Beijing to deepen political trust and practical cooperation.