New Zealand Annual Report: The Chinese Communist Party is the Main Cyber Threat.

New Zealand’s National Cyber Security Center (NCSC) released the 2026 Cyber Threat Report on Thursday, highlighting the ongoing threats posed by state-sponsored cyber activities to the New Zealand government and businesses. According to the report, activities related to the Chinese Communist Party (CCP) are described as “the most persistent and capable.”

During the period from July 2025 to June 2026, the NCSC handled a total of 369 network incidents with potential national significance, of which 86 were believed to be linked to state-sponsored actors, accounting for approximately 23%. The activities were traced back to China, Russia, Iran, and North Korea, with national-level Chinese network actors identified as the most persistent and capable in New Zealand.

These suspected state-sponsored network activities targeted government agencies, as well as sectors such as healthcare, education, and information technology. NCSC stated that some attacks could potentially lead to the leakage of sensitive information in New Zealand, with actors primarily obtaining information through means like network intrusion and intelligence gathering.

The report highlighted that state-sponsored network actors may prioritize targeting critical infrastructure, networks, public services, or organizations holding strategic information. Cyber espionage activities often operate covertly, with attackers conducting reconnaissance months or even years in advance to maintain system access and then carrying out intelligence gathering or disruption activities when deemed appropriate.

Apart from state-sponsored network activities, New Zealand is also facing a rising trend in cybercrime. Among the 369 significant network incidents in the 2025/26 period, 162 were linked to suspected criminal or economically motivated actors, marking an 18% increase from the previous year. A total of 4673 network security incident reports were received during the same period.

The NCSC’s statistics indicated direct economic losses recorded for the 2025/26 period amounted to NZD 23.8 million (approximately USD 13.5 million), lower than the previous year’s NZD 26.9 million. However, this figure only represents voluntarily reported direct economic losses by victims and does not encompass all actual losses.

The report also noted the transformative role of artificial intelligence in shaping cyber threats. Both state-sponsored actors and cybercriminals have begun leveraging AI to enhance the efficiency of phishing, fraud, reconnaissance, and to escalate the speed and scale of cyber attacks.

NCSC warned that geopolitical competition in the South Pacific region is increasingly extending into cyberspace. Given New Zealand’s close ties with Pacific Island nations in family, cultural, political, and economic aspects, cyber espionage activities targeting governments and infrastructure in the region might have implications for relevant institutions and businesses in New Zealand.

In April 2026, New Zealand, along with nine other countries, issued a joint warning about CCP-related actors creating large-scale “zombie networks” using compromised home routers and devices to conceal malicious cyber activities. These networks, known as “Volt Typhoon” and “Flax Typhoon,” were utilized by CCP-related actors to target infrastructure networks.

Furthermore, in August 2025, New Zealand joined with 12 other countries in warning about the activities of the “Salt Typhoon” linked to the CCP. These activities, supported by the Chinese government, targeted global telecommunications, transportation, and government networks, with several countries including New Zealand reporting related incidents.

Additionally, the New Zealand Security Intelligence Service (NZSIS) released the 2026 New Zealand’s Security Threat Environment Report in August, identifying multiple countries engaging in espionage activities but singling out the People’s Republic of China as the only nation found to conduct espionage activities “at scale.”

The report highlighted that CCP-related intelligence activities involve seeking government information, research findings, technology, intellectual property, network penetration, and obtaining sensitive information through personnel. The Chinese authorities consistently deny accusations by Western countries regarding their cyber espionage activities.