Cross-party committee criticises government China policy for lacking consistency

A cross-party committee of MPs has concluded that the Labour government’s approach to relations with China prioritises diplomatic politeness over national security. The Business, Innovation, Science and Trade Committee issued a report warning that the current stance places the United Kingdom’s security at risk. The committee found that ministers have failed to translate high-level strategic priorities into clear policies and rules governing engagement with the world’s second-largest economy. Instead of a coherent framework, the government has been criticised for making policy as it goes along, resulting in missed opportunities and unmanaged risks.

The report highlights significant concerns regarding the proliferation of low-cost, sophisticated Chinese connected technology in the UK. These devices, which range from smart home equipment to connected vehicles, heighten the risk of dependence on Chinese supply chains. The committee noted that such technology opens the possibility for hackers or state actors to remotely control or disable devices. Furthermore, it creates dangers for the exfiltration of vast quantities of UK data to Chinese servers, where malicious actors may gain access. The MPs expressed disappointment that the government has not created a register of high-risk jurisdictions, arguing that this omission demonstrates a preference for diplomatic courtesy over the protection of national interests.

To address these vulnerabilities, the committee recommended the implementation of a traffic-light system in trade relations. This framework would restrict matters related to resilience and defence from China, while providing extra guidance and mitigations for other areas of the economy. Officials from TechUK, who contributed to the research, suggested that clearer rules would benefit artificial intelligence and semiconductor companies dealing with Chinese firms. Additionally, the report called for a ban on imports of goods made using forced labour, stating that current prohibitions are not fit for purpose. The MPs described the government’s lack of urgency on this issue as disappointing.

Liam Byrne, the Labour figure who chairs the committee, stated that ministers have failed to be consistent and clear about trade-offs. He argued that Britain must shape its own relationship with China to avoid having that relationship shaped for it in Washington or Beijing. Byrne emphasised the need to welcome trade that builds Britain’s strength while stopping trade that puts that strength at risk. He contended that this approach would turn engagement into growth and growth into lasting security. The committee concluded that the government’s decision-making record has lacked consistency at a time when both British and Chinese businesses have emphasised the need for predictability. They warned that business cannot plan for the long term when the government’s rules and limits remain unclear.

In response to the report, the government’s business department stated that it has put UK-China relations on a more stable, balanced, and long-term footing. Officials said this approach is based on a clear-eyed assessment of both the opportunities and the risks involved. The government’s position relies on a manifesto commitment to bring a long-term and strategic approach to managing relations with China. This strategy involves co-operating where possible, competing where necessary, and challenging where required. The government has previously argued that its approach focuses on taking the world as it is, rather than as it would wish it to be.

The scrutiny of the government’s China policy comes amid broader security concerns. MI5 officials have urged universities to reconsider institutions with Chinese parties. Parliamentarians have also faced what has been described as a covert and calculated effort by Chinese authorities to convert them into spies. Former Prime Minister Sir Keir Starmer visited Beijing in January, agreeing to lower Scotch whisky tariffs by half. Meanwhile, Andy Burnham has given little indication of his views on China, having only spoken to President Xi Jinping in September. The committee’s findings suggest that a more rigorous and consistent approach is needed to safeguard the UK’s interests in an increasingly complex geopolitical landscape.