Security staff at University of Waikato confiscated a sword from one of two men who were seen marching around campus in military regalia and carring a Chinese flag.
The incident reportedly took place yesterday, just a day after China celebrated the 70th anniversary of the Communist Party coming to power.
A New Zealand Reddit user spotted the two people and took a photo, and also said pro-China flyers had been posted around the university since the Hong Kong anti-extradition law protests began earlier this year.
The incident also follows tensions between Hong Kong anti-extradition law protestors and Chinese students this year at Auckland University.
A spokesperson for University of Waikato condemned the actions of the young men, saying "the University does not condone any action that could pose risk to student safety in any way.
"Campus security were quickly notified of this particular situation and immediately confiscated the sword from these young men.
"We understand these young men are not University of Waikato students.
"They came to the University to celebrate Chinese Independence Day as the University was celebrating International Day on campus.
"Campus security are quick to asses risk and act if necessary and in this instance they did so by confiscating the sword."
The spokesperson said the university is "not aware" of any instances of tensions between mainland Chinese and Hong Kong students.