Former New Zealand Prime Minister Helen Clark and her old political rival Don Brash have teamed up to criticize Prime Minister Christopher Luxon, accusing him of making an unexpected "radical shift in New Zealand's foreign policy" that could upset China, New Zealand's largest trading partner.

During a recent visit to the United States, Prime Minister Luxon gave an interview to the Financial Times in which he said New Zealand might "disclose more and more cases of Chinese espionage".

He also said New Zealand was now "very open" to participating in the "second pillar" of AUKUS - a defence partnership between Australia, the UK and the US - and talked about the New Zealand Defence Force (NZDF) being a "force multiplier for Australia, the US and other partners".

Clark and Brash, two former politicians who faced off against each other in a contentious and tense 2005 election, issued a joint statement on Tuesday saying it would be "difficult, if not impossible, to maintain friendly relations with China if the New Zealand government continues to align itself with the United States."

Clark was New Zealand's prime minister during the Labour Party administration. During her tenure, New Zealand became the first OECD member country to sign a free trade agreement with China. Brash was the leader of the National Party and later led the Act Party.

The two said National had "no plans for any major shift in New Zealand's foreign policy" during the election campaign, and Luxon's comments could have "significant implications for trade, defence deployment and public spending".

"The prime minister, in his interview with the Financial Times, made comments that suggest he is more in favour of a military alliance with the United States than he has been in the past," Clark told RNZ's Midday News on Wednesday.

"If you take several elements of his comments together, it really represents a significant shift in New Zealand's foreign policy - for example, the change in context of New Zealand's defence forces being described as a 'force multiplier for the United States and Australia'."

About a visiting forces agreement so that New Zealand can deploy forces in the Philippines - which immediately signals a possible naval presence in the South China Sea.

"At a time when all other sectors are cutting jobs and spending, they are talking about increasing defense spending."

"Then there is 'very open' to joining the second pillar of AUKUS - we have never mentioned the phrase 'very open' before."

"And then, of course, there's the naming and shaming of China, which now seems to be an increasingly frequent approach by New Zealand towards its major trading partner."

ACT leader David Seymour is currently serving as acting Prime Minister while Luxon is on personal leave and Deputy Prime Minister Winston Peters is away on an overseas trip.

He said there was no change in New Zealand's policy.

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"We have not been invited to join Pillar Two, we have not decided to join Pillar Two, we are still having ongoing conversations about Pillar Two and that was actually the same discussion that was being had by Chris Hipkins under the last Labour Government - so effectively our position has not changed."

He said he admired Clark and was familiar with Brash, but that both men "appeared particularly unethical on this issue."

"Their basic pitch is: the US is a country, China is a country and we need to treat them the same. Well, one of those two countries is deeply involved in espionage against New Zealand, one of them is undemocratic and ... one of them has a very poor human rights record."

On the topic of Luxon's concerns about Chinese espionage, Seymour said there were no cases of similar espionage activities such as the one discovered against the New Zealand Parliament in 2021 being carried out by the United States, Australia or the United Kingdom.

He didn't think New Zealand's position had shifted since the Coalition came to power, but changes had been happening over the years.

We want to continue to have a relationship with China, but we will not shy away from pointing out things we disagree with - and that is a position that we have built up over the last three or four years through governments of different parties."

Then there is 'very open' to joining the second pillar of AUKUS - we have never mentioned the phrase 'very open' before.

"I think we should focus on our own policies and make sure New Zealand's economy is competitive, which is why we're doing reforms in [resource management laws], we're doing infrastructure investment, finance, education... you name it, we're doing reforms."

"If the United States is going to make a shift in its trade and investment, I think we should open the door to them, whether in life or politics, I prefer to focus on the things I can change."

Foreign Minister Winston Peters said in May that New Zealand was far from finalising its decision to join AUKUS's second pillar, which involves sharing advanced technology, but he was not sure what New Zealand would gain from it.

The first pillar involves matters related to nuclear submarines, an area that New Zealand, which has long implemented a policy of denuclearization, will never touch.

"The previous government's position was to learn more, but the previous prime minister made it clear that he was not convinced," Clark said of Pillar 2. "Now we are seeing this government moving more and more towards engagement. That is the direction this government wants to go, so it can be said that this is a significant shift."

Clark said Luxon's comments had the potential to put New Zealand's independent foreign policy stance and economic security "on the line".

"(The Chinese market) carries twice as much of our exports as Australia and more than twice as much as the United States... We are in trouble," she said.

"I would also like to point out that the accusations against China are about espionage, but American spies, British spies, New Zealand spies...how many countries are conducting intelligence activities, but New Zealand chose to specifically name a certain country in order to stand with the United States."

"I think this will have a very serious impact on the economy."

Australia's former foreign minister recently criticized AUKUS's second pillar as "stinking nonsense."

Luxon had previously refused to give assurances whether it would conduct a public consultation if New Zealand joined AUKUS Pillar 2 .