Prime Minister Christopher Luxon has used his first official foreign policy speech to warn New Zealanders to be more than just an "interested bystander" in an increasingly complex and difficult world.
Speaking to the Lowy Institute in Sydney this evening, he spoke of New Zealanders' need to step up.
"New Zealanders sometimes perceive themselves as buffered by splendid isolation … but there is no opting out from today's strategic realities.
"The world is getting more difficult and more complex, particularly so for those smaller states navigating increasingly stormy seas … New Zealand too must be a participant and a contributor - not an interested bystander."
It was the prime minister's first official foreign policy speech, and he used it to signal a shakeup of New Zealand's defence spending in order to bolster shared security with Australia as he pivots toward traditional partners.
Luxon spoke of the increasing challenges internationally.
"Our strategic outlook is deteriorating more rapidly than at any time in our lifetimes.
"Tectonic shifts are unfolding in the global distribution of power, economic heft, and strategic influence."
He also pointed to the work New Zealand was doing with Australia, the UK and the US.
"We are deliberately deepening our relationships with Australia, as well as other Five Eyes partners."
When it came to China, he acknowledged the country remains New Zealand's biggest trading partner.
He also reiterated messages he had conveyed to Premier Li when he visited New Zealand.
"Difference in values and systems of government mean there are issues on which we cannot and will not agree. Where we disagree, we will raise our concerns privately and also, when necessary, publicly in a consistent and predictable manner."
Luxon outlined his ambitions for the relationship between New Zealand and Australia.
- Bolster shared security
- Partner in the Pacific in support of Pacific priorities
- Ensure prosperous economies on both sides of the Tasman
He spoke of New Zealand upgrading capability and infrastructure and investing in new capability.
"Strengthening interoperability with our ally Australia will be a central principle of our capability decisions.
"It's important we can continue to deploy alongside each other in response to the growing array of security challenges we face, particularly in the face of rapid technological change.
"In this regard, we welcome AUKUS as an initiative to enhance regional security and stability."
In the Pacific, there was a focus on supporting the Pacific Islands Forum.
"Like Australia we want to strengthen the region's capacity to ensure the prosperity and well-being of future Pacific generations, especially through the Pacific Islands Forum."
And, Luxon said, between New Zealand and Australia they were working to further deepen our own bilateral economic integration.
"There are further gains to be had through trans-Tasman integration. We need to do the basics right - through standards harmonisation. We need to ensure alignment of our regulatory environments for new technologies - whether the clean energy transition or artificial intelligence."
'Remember who we can rely on'
International law professor Al Gillespie, speaking about the relationship between the two countries, referenced the challenging international environment.
"In times of tension, we need to remember who we can rely upon, and Australia is our foremost ally and foremost friend.
"Right now, it's no secret that the tensions are getting quite high in the world. And I think as the tensions arise, we're looking increasingly to those we can rely upon, as we have in the past."
Militarily though, Gillespie did not think New Zealand was pulling its weight in the bilateral defence relationship in terms of capacity.
"The Australians are spending over 2 percent of their GDP on the military. And I think if we want to stay up with them, we need to be prepared to commit the same amount of what we spend on our military."
Gillespie said it was about making sure it was fully interoperable.
"Then we'll be able to give a much greater contribution when asked to by our friends and allies, and even just to protect our own region.
"We have underfunded our military for over a decade now, and we have to quickly step up. And that expectation won't just be from the Australians, it would also be from our other friends, both the United States and those in Europe."
When it came to AUKUS Pillar Two, Gillespie acknowledged it was difficult, but believed the tightrope could be walked when it came to maintaining ties with China.
"I think [sic] 27 percent of our trade goes to China, but with Australia. I think it's 32 percent and so you can, you can still be part of a defensive alliance in."
He said it was not an either or situation, but, he believed there did need to be a public debate about the costs and benefits.
Labour's foreign affairs spokesperson David Parker agreed.
"I think the government needs to have a conversation with New Zealanders as to whether AUKUS pillar two is in the interests of New Zealand, positioning China, our largest trading partner, as a military foe, seems to the Labour Party to be an unusual thing to do, and we're not convinced that is the right thing for New Zealand.
"So that might be something that Mr. Luxon cares to discuss with Australia, but it's more important that he discusses it with New Zealanders."
The prime minister is travelling to Canberra to meet with Anthony Albanese on Friday.