New Zealand Foreign Minister Winston Peters said on Wednesday his country must “reset” its relationship with the Cook Islands government after its Pacific neighbour signed agreements with China without consultation.

The public quarrel between New Zealand and the Cook Islands — which share a passport, a military and constitutional ties — is a victory for Beijing.

Cook Islands is “always free to choose” to be independent of New Zealand, Foreign Minister Winston Peters said Wednesday. The statement from Peters came amid tensions between Wellington and the self-governing South Pacific island nation that signed a pact with China last week.