China and US ‘should be in toughest tier' of foreign influence scheme
Sir Keir Starmer's Government has sought to balance a revival of Chinese relations in its pursuit of growth with matters of national security amid concerns about Chinese interference in Britain.
However, Beijing has been spared from the most stringent requirements of the UK's new Foreign Influence Registration Scheme (Firs), which would see anyone working for the state to declare influence activities in Britain.
Under existing rules, China is in the lower tier of the scheme which requires the declaration of 'political' activity alone, while Iran and Russia have been placed in the higher 'enhanced' tier covering a wider range of activities.
In its report, Chatham House called for both the US and Beijing to be placed in the enhanced tier 'as part of a wider move to build UK resilience to great power influence'.
Report author William Matthews said: 'Including both China and the US on the enhanced tier of Firs need not entail casting them as threats, and should be considered in terms of a policy of adapting the UK to a world of great power competition.
'Inclusion of the US could offset the risk of antagonising China, though China would still likely respond angrily, and would almost certainly provoke an angry response from the US.
'However, in the long-term it would be better for this to happen now if the UK seeks to maintain an autonomous foreign policy in its own interests, rather than at a future point when… risks are amplified due to intensifying US-China competition, which would make it harder to diverge from Washington where interests do not align.'
Among the risks posed by great power rivalry are the likelihood that America will show more 'transactional' behaviour as its 'relative power' declines, and the potential for the UK to be 'targeted coercively' by Beijing if it is seen to act as a proxy for US interests, he said.
Chinese dominance of supply chains for critical raw minerals, electric vehicles and green power means the UK cannot avoid economic engagement with the country, the report warns.
In its recommendations, it urges against the UK taking sides in the rivalry between the US and China and calls on the Government to be prepared to diverge significantly from Washington in its approach to Beijing.
'The UK cannot afford to lock in dependence on the US at the expense of supply chains and technologies essential for economic prosperity,' it says.
However, alongside maintaining economic ties it urges the Government to introduce key protections to guard against 'the risks of Chinese political interference'.
Among its recommendations is a call to carry out safety checks on Chinese digital components entering UK markets, to be modelled on the previous Huawei Cyber Security Evaluation Centre – nicknamed the Cell.
Where the risks can be mitigated, Chinese technology investments should be considered – outside of projects involving Government procurement and critical national infrastructure, it says.
The Government should also formally make permission for entities linked to the Chinese Communist Party (CPC) to operate in Britain conditional on their adherence to UK democratic norms and civil liberties, the report recommends.
A 'coordination centre' bringing together policy-makers, business chiefs, academic experts and civil society should be established and meet regularly to share approaches to China-related issues, it says.
A spokesperson for the Foreign Office said: 'This Government is taking a consistent, long-term and strategic approach to managing the UK's relations with China, rooted in UK and global interests. We will cooperate where we can, compete where we need to and challenge where we must.
'This includes supporting UK business to engage with the second largest economy in the world – one of our largest trading partners – while being open-eyed to any risks and ensuring security and resilience.'
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