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Significance

The statement commits the Labour-led coalition government at least to maintain, and possibly increase, New Zealand’s military capacity in response to the changing political and strategic environment. It also emphasises left-friendly and Green-friendly issues including climate change. However, the DSPS has drawn some rebuke from China.

Impacts

Competition between Beijing and Wellington for strategic influence in the Pacific will grow, but Beijing has greater resources to utilise.

Australia will welcome Wellington's increased defence spending, including, like Canberra, on surveillance planes.

Spending more on defence could limit Wellington’s ability to pay for its social and “wellbeing economics” agendas.

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