By Lucy Craymer
WELLINGTON, Aug 13 (Reuters) – New Zealand’s security agency said it disrupted an attempt by a Chinese state-linked observatory to install satellite-tracking infrastructure in the country, highlighting the case in its annual assessment of an increasingly dangerous espionage environment.
The New Zealand Security Intelligence Service (NZSIS) said Purple Mountain Observatory, an organisation based in China with close ties to the government in Beijing, had sought to install ground-based space infrastructure through a local company that was likely unaware that the equipment could collect intelligence of military value. The agency did not identify the New Zealand company or detail how the plans was disrupted.
The warning 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.”
“Our last report described the threat environment as being the most challenging of recent times,” NZSIS Director-General Andrew Hampton said. “The kinds of malign behaviours and activities we have seen over the past 12 months are proving even more threatening for a country like New Zealand given its size and location in the South Pacific.”
The Chinese Embassy in New Zealand has not responded to a request for comment and the observatory did not respond to an emailed request for comment.
NZSIS said China’s intelligence services were the most active espionage threat it faced, while cautioning that the finding should not prevent New Zealand organisations from trading or collaborating with Chinese entities. It urged an “eyes wide open” approach to overseas business and research ties.
The agency said Beijing’s national security laws could compel Chinese individuals and organisations to comply with intelligence-service requests, including by handing over data, intellectual property or system access. In the Purple Mountain case, NZSIS assessed that any data collected would have been passed to the Chinese government willingly.
New Zealand’s location in the South Pacific makes it attractive for ground-based systems that track satellites, space debris and other scientific data, NZSIS said. It is also a member of the “Five Eyes” security grouping which includes the U.S., Britain, Canada and Australia.
NZSIS said foreign states were targeting New Zealand government agencies, companies, universities and researchers for non-public information, innovative technology and intellectual property. Methods included cyber intrusions, recruitment of insiders, academic partnerships, front companies and commercial intermediaries.
It said geopolitical rivalry, competition over technology and supply chains, foreign interference targeting diaspora communities, and the use of artificial intelligence to spread polarising or deceptive content were compounding risks.
(Reporting by Lucy Craymer in Wellington, additional reporting by the Beijing newsroom; Editing by Lincoln Feast.)
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