Security report pointing finger at China welcomed with a warning

Community leaders have welcomed the latest security threat assessment from the country's top intelligence agency but warned that the results shouldn't be used to stigmatise Chinese New Zealanders.

The Security Intelligence Service (NZSIS) published its third annual Security Threat Environment report on Thursday, noting a deterioration in the threat environment since last year's assessment.

As it has done in previous years, the report highlighted foreign interference, espionage, violent extremism and online radicalisation as threats, warning that New Zealand was "facing the most challenging national security environment of recent times".

While noting that other states were also engaged in foreign interference activities in New Zealand, the report said China was the "most active".

The report highlighted geopolitical instability brought about by competition between powers such as Washington and Beijing, as well as China's activities in the Indo-Pacific region.

Organisations that engaged in foreign interference such as China's United Front were also highlighted in the report.

New Zealand businesses were also warned to be wary of China's national security laws and be conscious and deliberate about potential risk when engaging with entities in China.

In a statement, the Chinese Embassy said the report was "rife with unfounded speculation, distortion of facts, and baseless accusations against China".

"The content of the report is entirely unsubstantiated and groundless, saturated with ideological bias and a Cold War mentality," the statement said.

"The accusations sound very familiar as they rehash smears and slanders fabricated elsewhere, repackaged for the New Zealand audience."

The essence of the China-New Zealand relationship was mutually beneficial but whenever the countries grew closer, people attempted to undermine it, the statement said.

"We are confident that people in New Zealand will make their own independent and rational judgements, and will not be misled or intimidated by forces with ulterior motives," the statement said.

"Those who attempt to sabotage China-New Zealand relations for their own selfish, geopolitical purposes will not succeed. Whoever persists in lifting the wrong stone will only end up dropping it on their own foot."

'Encourage understanding and resilience without creating fear'

Richard Leung, a Chinese community leader based in Auckland, said it was important to take the intelligence agency's advice seriously.

"It's important that all communities in New Zealand, including Chinese New Zealanders, are aware of the risks, but also that we don't jump to make [any] assumptions or stigmatise any group," he said.

Leung was reassured that government agencies were monitoring foreign interference activities in New Zealand.

Businesses should be aware of legal and security implications and seek professional advice and practice due diligence as they would with any international partner, Leung said.

"For Chinese New Zealanders, this mainly means continuing to participate fully and confidently in New Zealand life, while being mindful of the same security considerations that apply to all New Zealanders," he said.

"Ultimately, awareness, transparency and trust in our democratic institutions are the best protections," he said.

"Our role as community leaders is to encourage understanding and resilience without creating fear."

Paul Chin, national president of the New Zealand Chinese Association (NZCA), said his organisation supported keeping communities safe and connected to their culture while upholding democratic values.

"It is important to protect national interests, but without stigmatising Chinese New Zealanders who are valued members of our diverse society," Chin said.

"NZCA supports informed respectful conversations that both preserve security and inclusion."

He said not all activities targeting Chinese communities were malicious or orchestrated.

He also cautioned against stigmatising community engagement activities, especially among students and small organisations.

In terms of China's activities in the Pacific, Chin said New Zealand should continue to protect its sovereignty without causing an overreaction.

"NZCA encourages a comprehensive and consultative approach that recognises that Pacific Island nations do have a right to pursue diverse partnerships, including China," he said.

"The challenge is to offer collaborative, mutually respectful alternatives based on transparency and the regions shared well-being."

Anne-Marie Brady, a professor of political science and international relations at Canterbury University, said New Zealanders needed to be informed of the national and external security environment.

"It is good to see [that the] New Zealand government is increasingly confident about sharing national security and strategic environment information with the ... public," Brady said. "An informed society is a resilient society."

She said the business community should take advantage of the security advice provided by NZSIS when working with entities in China and "familiarise themselves with New Zealand laws on the export of sensitive technology".

'Take extra steps to be vigilant'

In an interview with RNZ's Morning Report on Thursday, NZSIS director-general Andrew Hampton reminded New Zealanders to be cautious.

"We're not saying don't engage internationally," Hampton said. "What we're saying is just be aware that that engagement sometimes carries with it risks.

"So, take extra steps to be vigilant about who you are engaging with. Check whether the people who you're meeting with are actually who they say they are and do they have links back to a foreign state that may not be made explicit."

Hampton encouraged people to refer to the agency's due diligence guidelines to reduce risk.