New Zealand says China tried using space investments to spy on local affairs

New Zealand’s Security Intelligence Service (NZSIS) has claimed Chinese companies are building space facilities in the nation to gather military intelligence.

Director-general of security Andrew Hampton yesterday made that allegation in the SIS’s annual threat environment assessment.

The document points out that New Zealand’s space sector is booming, because the nation’s location makes it “an ideal place to install Ground Based Space Infrastructure (GBSI) … to track satellites and space debris, as well as for collecting a range of other scientific data.” The NZSIS has also found that GBSI is “attractive for foreign states seeking to advance military capabilities and intelligence operations.” The report offers a case study of a China-based organization called “Purple Mountain Observatory” that has “close links” to Beijing and tried to install GBSI in New Zealand.

“They worked with a local company that was likely unaware of the equipment’s capability to collect intelligence of military value and would have no idea who was receiving the data,” the report states, before noting that Chinese laws mean Purple Mountain could be compelled to provide information to China’s government.

The intelligence agency believes Purple Mountain “would have … willingly passed on” data it collected.

“NZSIS, working with other agencies was able to disrupt this activity, but it was not the first time this organisation has attempted to install its own GBSI in New Zealand and is unlikely to be the last.” The report rates China as the only country targeting New Zealand at scale, based on activity NZSIS has been able to observe.

“We have observed increased targeting of professional networking sites and online job platforms for espionage purposes by China’s military intelligence services,” the assessment finds.

"PRC (People’s Republic of China) intelligence officers, or their affiliates, use an aggressive strategy where they pose as consultants or employees of think tanks, or recruitment firms.

They place online job advertisements looking for analysts in foreign policy, international relations, defence or security,” the document states.

“Candidates are then vetted by PRC intelligence to determine what information they have had access to and whether they would divulge it.

The job offers are lucrative, but the intelligence officers often encourage their candidates to keep their government jobs both to keep the information tap running and to open up opportunities to recruit their colleagues.” The report also observes that some recent cyber-attacks were probably the work of state-backed groups trying to destabilize New Zealand.

“Looking for the sharpest needle in endless giant stacks of needles” The document also addresses domestic threats, especially violent extremism.