Government making up China policy as it goes along, say MPs

Government making up China policy as it goes along, say MPs

The government has been criticised by MPs on the business committee for failing to maintain a consistent strategy towards China, instead formulating policies in a seemingly ad hoc manner. According to the committee’s report, this lack of coherence in decision-making has increased vulnerabilities to national security threats. It emphasised the need for ministers to take firmer steps, including prohibiting the transfer of sensitive data to China, establishing clear guidelines for businesses engaging in trade with the country, and banning imports produced with forced labour.

In response, the business department rejected the committee’s assessment, asserting that their approach to China remains steady, striking a balance between cooperation and necessary challenges. A spokesperson highlighted that the UK’s relationship with China is now based on a balanced, long-term framework which carefully weighs both potential benefits and risks. They underscored the government’s trade strategy focus on economic growth without compromising national security and noted that ongoing dialogues with China allow for raising concerns directly when needed.

Former Prime Minister Sir Keir Starmer had advocated for closer engagement with China, stressing that the UK should not overlook economic opportunities, but he insisted this must not come at the expense of national security. Nevertheless, some MPs voiced unease about these attempts to strengthen ties, particularly regarding alleged Chinese espionage activities on UK soil. An audit of UK-China relations was conducted last year, but the government has yet to release it publicly, citing the inclusion of classified material. Sir Keir’s successor, Andy Burnham, has not yet stated his stance on the country’s future dealings with China.

The Business, Innovation, Science and Trade Committee highlighted in its report that successive governments have failed to assure the public that sufficient measures are in place to safeguard national security and economic resilience. MPs noted that the government’s inconsistent policies and unclear directives have created difficulties for businesses trading with China. To address this, the committee recommended establishing “red” and “green” trade zones to clearly designate permissible and restricted areas for investment. Additionally, they called for the government to enforce fair trade practices by preparing tariffs applicable if China continues to subsidise industries or does not provide reciprocal market access. They also urged a ban on Chinese connected technology in critical infrastructure, stressing that the widespread use of low-cost Chinese tech in the UK has been prioritised over national security considerations. Universities, too, should receive quicker guidance on collaborating with Chinese research institutions. Committee chair and Labour MP Liam Byrne remarked, “Britain’s businesses cannot plan for the future when the government keeps making up its China policy as it goes along,” emphasizing the need for the UK to control its own relationship with China rather than having it dictated by external powers

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