A New Zealand political scientist, Dr John Henderson, says the New Zealand government will be concerned that Niue has established diplomatic links with China.
In a joint commmunique, Niue and China have made promises of non-aggression and non-interference in eazch other's territorial affairs, and to develop friendly co-operation.
Dr Henderson says Niue has been looking for aid backing from China for some time but he says in the past New Zealand has tried to discourage the establishment of formal links.
"Basically because they don't have the expertise or the experience for handling such an arrangement. But it has to be said that the Cooks have done this and recently benefitted from quite a lot of Chinese aid and that is what Niue will be looking for in the future."
Dr John Henderson.
Niue is considering an offer from a Chinese company to buy and manage its phone company while there is also a proposal to build a major tourist hotel.