During a time of heightened tensions in the Indo-Pacific, New Zealand Prime Minister Christopher Luxon and Australian Prime Minister Anthony Albanese convened for their second annual bilateral leaders’ meeting in Queenstown. Their discussions were heavily influenced by recent Chinese military exercises near their maritime boundaries, which underscored the need for enhanced military collaboration.
Luxon emphasised New Zealand’s aspiration for closer military ties with Australia, referring to Australia as New Zealand’s “only ally”. He expressed a desire for interoperability between their forces, aiming to create a cohesive “Anzac force” reminiscent of their historical military partnership during World War I. Both leaders acknowledged the complex and unpredictable strategic environment they face, asserting that their alliance is vital for safeguarding their mutual interests.
In their joint statement, they commended advancements made over the past year in defence cooperation. This dialogue comes on the heels of a Chinese naval flotilla conducting live-fire drills in the Tasman Sea, which led to the diversion of commercial flights—a demonstration of China’s expanding military capabilities. Albanese had previously raised concerns with Chinese President Xi Jinping regarding the lack of notice about these exercises, to which Xi cited Australia’s own military operations in the South China Sea.
Although their statement did not explicitly mention China, the topic was evidently discussed, with Albanese highlighting the geopolitical challenges posed by major powers. Luxon concurred that both nations have adopted similar approaches in dealing with China, acknowledging the importance of engaging in mature conversations about their differing histories, systems, and values.
Luxon also recently announced plans to enhance New Zealand’s military capability, proposing to increase defence spending to over 2% of GDP—up from around 1%—marking a significant shift in New Zealand’s defence posture. This development coincides with Japan seeking stronger strategic ties in the South Pacific, highlighted by Japanese warships docking in New Zealand for the first time in nearly nine decades.
Further underlining regional defence commitments, Australia is set to collaborate with Japan’s Mitsubishi Heavy Industries to construct a fleet of naval frigates, alongside its larger AUKUS submarine deal with the United States and the UK, which is projected to cost up to $375 billion.
In light of increasing calls for stronger defence budgets, Albanese affirmed Australia’s commitment to increasing its own spending, engaging with prominent business leaders to strengthen economic ties between both nations. As Albanese wraps up his visit, he will commemorate their shared history by laying a wreath at a war memorial and enjoying a helicopter tour with Luxon and Māori elders.