China Calls New Zealand's Spy Report Claims "Entirely Baseless"

China insisted Thursday it did not pose a threat to New Zealand's national security after the country's spy service singled out Beijing-backed groups as a "complex intelligence concern".

New Zealand's Security Intelligence Service levelled unusually candid criticisms at China in its annual threat report, released this week, saying ongoing foreign interference efforts were "complex and deceptive".

China's embassy in New Zealand hit back on Thursday, branding such claims "entirely baseless" and "a figment of imagination or sheer fabrication".

"There is no competition to speak of between the two countries, and China is not a threat to New Zealand," an embassy spokesperson said in a statement. 

Beijing was accused of infiltrating local groups, replacing authentic community views with those approved by the ruling party. 

In one example, a Chinese-language community news outlet was accused of regurgitating government talking points. 

"The report's blatant attempts to discredit the Chinese diaspora and students are nothing but an effort to sow discord, create fear, and foster division," replied China's embassy spokesperson. 

"This is highly irresponsible, reckless, and deeply unfair to the Chinese community." 

China's embassy suggested external forces -- likely a veiled reference to the United States -- had been meddling to undermine relations between the trading partners. 

New Zealand's centre-right government has shifted the country's foreign policy closer to traditional Western allies such as the US. 

This has come with an increased willingness to speak out against China. 

In March, Wellington said a Chinese state-sponsored group was behind a 2021 malicious cyber attack that infiltrated sensitive government computer systems. 

China remains New Zealand's biggest trading partner -- exporting dairy, meat and wood products that exceeded NZ$21.39 billion (US$13.2 billion), according to the most recent official data. 

New Zealand Prime Minister Christoper Luxon has warned that although China was "a country of undoubted influence", different values mean "there are issues on which we cannot and will not agree".

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)