Read The Times Australia

Daily Bulletin

In Trump’s precarious world, NZ will need all the middle-sized friends it can get

  • Written by: Nicholas Ross Smith, Senior Research Fellow, National Centre for Research on Europe, University of Canterbury

When a local political commentator recently suggested (partly tongue-in-cheek) that New Zealand might respond to US President Donald Trump’s new world order by becoming the seventh state of Australia, it was dismissed by the prime minister and most political leaders.

But the fact their views were even sought shows how far the debate has moved since Trump began dismantling the old rules-based international order New Zealand has long considered the basis of its foreign policy.

At January’s World Economic Forum in Davos and more recently in his address to the Australian parliament, Canadian Prime Minister Mark Carney laid down a challenge for other “middle powers” to start finding practical solutions to the new global realities.

Carney’s clarion call matters also for smaller powers uneasy about the United States under Trump and rising great-power disorder. New Zealand, with its long-held preference for multiple alliances and foreign policy independence, is likely a keen ally in such a middle-power movement.

Yet the hard part remains: how can middle and smaller powers effectively work together when still mostly reliant on great powers for security, trade and technology?

The technological dimension, in particular, makes middle power cooperation harder today. Modern states are existentially dependent on semiconductors, AI systems, 5G infrastructure and cloud computing – technologies produced overwhelmingly by the two “technopoles” of the US and China.

In Trump’s precarious world, NZ will need all the middle-sized friends it can get
The world order has “ruptured”, Canadian Prime Minister Mark Carney has warned – so it’s time for countries like Australia and New Zealand to forge a new, less US-reliant future. In this new series, we’ve asked top experts to explain what that future could look like – and the challenges that lie ahead. Finding a ‘workaround’ In a forthcoming collection of essays about how middle powers might cooperate on vital technology in this turbulent world, the concept of “workarounding” describes how countries can pursue strategic objectives collectively, without routing everything through Washington or Beijing. For New Zealand, technology is already an area of real foreign policy concern. Military interoperability with Australia – a key driver behind potentially joining AUKUS Pillar Two – is a sticking point. More broadly, New Zealand risks being left behind in the AI revolution. The Indo-Pacific region, however, offers promising workaround partners. Beyond Australia – New Zealand’s oldest friend and only formal ally – there is a growing cluster of tech middle powers with which Wellington has positive relationships: India, South Korea and several key ASEAN states. India produces the world’s highest number of IT graduates, runs ambitious semiconductor and quantum computing programs, and maintains multiple alliances that allow it to resist being absorbed into either great power orbit. New Zealand’s relationship with India is burgeoning with the announcement at the end of 2025 of a free trade agreement. New Zealand also has a trade agreement with South Korea, and both countries are part of the Indo-Pacific Four group (with Australia and Japan). Home to Samsung, Hyundai and LG, South Korea is often heralded as the most successful tech middle power and occupies an important position in critical international tech supply chains. The ASEAN bloc – driven by key member states – also has a deep institutional instinct for hedging between great powers, and contains five major tech economies: Singapore, Indonesia, Malaysia, Thailand and Vietnam. New Zealand has strong relationships with ASEAN, including a trade agreement and a Comprehensive Strategic Partnership. The problem is that Australia, India, South Korea and ASEAN all face their own tech dependency constraints, and the group lacks a technologically capable anchor outside the US-China duopoly. Europe as a way forward A third party may be able to fill that anchor role – the European Union (EU). While it remains an imperfect geopolitical actor, long derided for being a hobbled giant or a geopolitical sleepwalker, the EU is still a potential ally to middle powers. That’s because it is not a conventional state and does not have the military capabilities of great powers. This forces it to take a multilateral and multi-stakeholder approach to geopolitics. Importantly, the EU has significant and growing technological weight, most clearly expressed in its regulatory frameworks. Its General Data Privacy Regulation has established a global data governance template that neither Washington nor Beijing can match. Such rules shape how data flows, how AI is governed and how digital markets are structured globally. The EU is also moving decisively into hardware to complement its regulatory power. The 2023 European Chips Act mobilises over €43 billion (A$70 billion) to double Europe’s share of global semiconductor production, spurred by the building of a semiconductor plant in Dresden. Dutch multinational ASML’s near-monopoly on crucial semiconductor manufacturing machines gives Europe genuine structural leverage over global chip supply chains. Furthermore, during the second Trump presidency, the EU has moved quickly to improve its strategic autonomy, as well as deepen its Indo-Pacific presence. It is building trade relationships and positioning European tech companies as alternatives to US and Chinese providers. New Zealand’s relationship with the EU is at an all-time high since a free trade agreement came into force in 2024. And there is significant convergence on how both view the Indo-Pacific. The NZ-EU trade agreement includes a dedicated digital trade chapter, and the inaugural trade committee meeting in October 2025 flagged cooperation on digital technologies and critical minerals as priorities. Carney was right about the old “fiction” being over. The task now for smaller powers such as New Zealand is not to mourn it, but to help construct something more durable in its place. This is a networked middle-power order built on shared standards, supply chain resilience and strategic diversification.

Authors: Nicholas Ross Smith, Senior Research Fellow, National Centre for Research on Europe, University of Canterbury

Read more https://theconversation.com/in-trumps-precarious-world-nz-will-need-all-the-middle-sized-friends-it-can-get-276391

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Microsoft Surface For Business (Microsoft 365 E3, E5, E7) And Modern Workplace Requirements

Understanding Business Device Requirements Microsoft surface for business (microsoft 365 E3, E5, ...

Choosing the Right Split System for Melbourne Homes

Why Split Systems Suit Melbourne Conditions Choosing a heating and cooling system starts with und...

What Happens to Remaining Sperm Stored in the Vas Deferens After the Procedure

Deciding to undergo a permanent contraceptive procedure is a significant life step for many men. Whe...

Top Tips on Combining TMS Therapy with Comprehensive Adult ADHD Care in Sydney

Managing attention-deficit hyperactivity disorder (ADHD) alongside co-occurring mental health condit...

What To Expect Before, During, And After Laser And CRP Hair Loss Treatments

Hair thinning affects millions of Australians, leading many to seek advanced, non-surgical solutions...

What To Ask During A Consultation For Men's Hair Loss Treatment And PRP

Walking into a clinic to address thinning hair can feel daunting, but preparation builds confidenc...

How to Ensure Safe and On-Time Building Material Delivery with Sydney Cargo Transportation Services

Managing a construction site requires precise coordination, where even a minor delay can stall an en...

What to Ask Your Cosmetic Surgeon About Liposuction and Thigh Lift Reduction in Perth

Establishing the Surgeon’s Credentials and Local Experience Your safety depends heavily on the cred...

Top Ergonomic Tips to Enhance Your Neck Pain Treatment and Prevent Back Pain In Sydney

Many office workers in New South Wales spend upwards of eight hours a day hunched over a keyboard, l...