New Zealand Agency Disrupts Chinese-Linked Satellite Tracking Plan

New Zealand’s security agency has revealed that it disrupted an attempt by a Chinese state-linked observatory to install satellite-tracking infrastructure in the country. The case has been highlighted in an annual assessment that warns of an increasingly challenging 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. The company was likely unaware that the equipment could collect intelligence of military value.

However, NZSIS did not identify the New Zealand company or explain how the plan was disrupted.

China Identified As Main Espionage Threat

The warning appeared in NZSIS’s Security Threat Environment 2026 assessment, released on Thursday. The report said China was the only country New Zealand had detected conducting espionage “at scale”.

NZSIS Director-General Andrew Hampton said the security environment had become increasingly difficult. He noted that the kinds of malign behaviour and activities identified over the past year were proving more threatening for New Zealand because of its size and location in the South Pacific.

The Chinese Embassy in New Zealand has not responded to a request for comment. The observatory also did not respond to an emailed request for comment.

At the same time, NZSIS cautioned that identifying China as the most active espionage threat should not stop New Zealand organisations from trading or collaborating with Chinese entities. Instead, it urged an “eyes wide open” approach to overseas business and research relationships.

Satellite Infrastructure Raised Security Concerns

NZSIS said China’s national security laws could require Chinese individuals and organisations to comply with requests from intelligence services. Such requests could include handing over data, intellectual property or system access.

In the Purple Mountain case, NZSIS assessed that any data collected would have been passed willingly to the Chinese government.

New Zealand’s position in the South Pacific also makes the country attractive for ground-based systems that track satellites, space debris and other scientific data, the agency said. In addition, New Zealand is a member of the “Five Eyes” security grouping, alongside the U.S., Britain, Canada and Australia.

Wider Espionage Risks Continue To Grow

NZSIS said foreign states were targeting New Zealand government agencies, companies, universities and researchers. Their targets included non-public information, innovative technology and intellectual property.

Meanwhile, the agency identified several methods used in such activities. These included cyber intrusions, the recruitment of insiders, academic partnerships, front companies and commercial intermediaries.

The assessment also pointed to broader risks linked to geopolitical rivalry, competition over technology and supply chains, and foreign interference targeting diaspora communities.

Furthermore, NZSIS said the use of artificial intelligence to spread polarising or deceptive content was adding to the risks facing New Zealand.

With inputs from Reuters