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Espionage at scale - why businesses must beware

Experts warn businesses must keep their eyes wide open when dealing with China, especially in tech or space industries.

The NZSIS 2026 Security Threat Environment report warns of intensified threats to New Zealand's security, specifically naming the People's Republic of China as the country conducting espionage at scale. The report highlights China's efforts to obtain critical assets, including high-tech secrets from the space sector, and targeting diaspora community groups within New Zealand.

A Purple Mountain Observatory, a Communist Party research institute, allegedly tried to use deception to place satellites in New Zealand. Former Washington Post Beijing bureau chief Anna Fifield notes that this is a concrete example of China's attempts to gain control over critical infrastructure in the region. The SIS report advises businesses and institutions to remain vigilant about potential threats from China, emphasizing that not all Chinese activities are benign.

The report follows the passing of an amendment to the Outer Space and High-altitude Activities Act, requiring registration for ground-based space infrastructure. Experts like Jason Young, director of the New Zealand Contemporary Chinese Research Centre, stress the importance of New Zealand businesses being aware of potential risks and conducting due diligence to mitigate them.

The report also highlights the Chinese embassy's denial of the allegations, suggesting it may be part of a broader campaign orchestrated by international forces.

Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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