Niuean tradition dictates boys grow their hair long, to be cared for by sisters, mothers and fathers.
Boys usually wait until they are 10 or 12 years old before they cut their hair. However, James' ceremony was brought forward because of his grandmother's declining health.
James' mother, Angela Drake, said the "coming of age" ceremony was an important step in the life of a Niuean boy.
"It's very special. I would put it up there with a 21st birthday, if not more important," she said. "It brings the families and the community together."
The ceremony was particularly important for James' 82-year-old grandmother Irene Drake, who was born in Niue and moved to New Zealand in 1953.
"It was her way of passing on some of herself to him," Mrs Drake said. "It [Niue] is a place that's important to her, so in a way it's bringing part of the island right into New Zealand."
James sat on a throne-like chair in front of the crowd during the ceremony, which lasted about three hours.
Hairdresser Michelle Hendry had the honour of leading the cutting ceremony.
James, who managed to sit still throughout the ceremony, also welcomed guests himself.
"He got up from his chair and sang a welcoming song in Maori. I was like, 'That's my son, that's my 4-year-old son singing," Mrs Drake said.
James said he enjoyed being the centre of attention. "I was a little nervous but not really bad." He said he liked his hair shorter because it "felt cool".
James' mother said it was important cultural traditions were passed to younger generations.
"It's proven that young children who have an understanding of their background, where they're from, are given some direction of where they're going in the future," Mrs Drake said. "It brings all that history and ancestry together."
