New Zealand has suspended millions of dollars in funding to the Cook Islands over agreements the smaller Pacific nation made with China.

China is New Zealand's largest trading partner, with over 20 percent of our exports coming here. But there is room for so much more," he said in a video posted on social media on Wednesday. "We're focused on growing trade where New Zealand leads.

New Zealand's latest move also comes as Prime Minister Christopher Luxon is on an official visit to China, where he will meet with Chinese President Xi Jinping on Friday.Peters' spokesman said he was not worried that Beijing might view the move negatively,