When Australia secures better economic deals or market access than New Zealand in its relationship with China or the US, would New Zealand be more inclined to develop greater economic and security cooperation with China? This paper explores how economic competition between allies can drive different engagement with non-allies. This paper compares New Zealand’s economic and security approaches to China in 2004-2008, 2014–2016, and 2019-2025, and examines the impacts of exporters’ responses to economic competition with Australia on New Zealand policymakers. The paper finds that differences in economic interests across the main exporting sectors between New Zealand and its ally, Australia, have security spill-over effects, leading New Zealand policymakers to adopt positive economic and security approaches towards China. New Zealand exporters are influential with New Zealand policymakers because of their economic significance, strong government links, and institutionalised lobbying channels. The paper argues that economic competition between security allies can lead to a more positive approach toward non-security partners with significant economic ties to the allies.
