UK seeks ‘trade and investment relationship' with China despite spying risk

Independent

a day ago

Chinese spying, interference in the UK's democracy and attempts to undermine the economy have increased in recent years, the UK Government said.
Ministers promised 'greater robustness and consistency' in the way the UK deals with China but acknowledged the desire for a 'trade and investment relationship' with the world's second biggest economy.
The 'China audit', which examined the extent of the UK's relationship with Beijing, recommended increasing the Government's ability to engage with the Asian economic superpower while increasing 'resilience' against the risks posed by Xi Jinping's country.
Foreign Secretary David Lammy said 'we understand that China is a sophisticated and persistent threat' – an apparent shift from the Government's previous description of it being a 'challenge'.
But he told MPs that in the past decade China has delivered a third of global economic growth, becoming the world's second largest economy and, together with Hong Kong, the UK's third largest trading partner.
'Not engaging with China is therefore no choice at all,' he said.
'China's power is an inescapable fact.'
Mr Lammy said the audit painted a 'complex picture' but 'the UK's approach to China will be founded on progressive realism, taking the world as it is, not as we wish it to be'.
'Like our closest allies, we will co-operate where we can and we will challenge where we must,' he said, vowing that meant 'never compromising on our national security'.
A summary of the audit's findings – including guidance for colleges and universities which rely on Chinese students and partnerships for vital funding – were laid out in the national security strategy.
'The challenge of competition from China – which ranges from military modernisation to an assertion of state power that encompasses economic, industrial, science and technology policy – has potentially huge consequences for the lives of British citizens,' the strategy said.
The audit underlined the need for 'direct and high-level engagement and pragmatic cooperation where it is in our national interest', signalling further high-level talks with Beijing.
'In a more volatile world, we need to reduce the risks of misunderstanding and poor communication that have characterised the relationship in recent years,' the strategy said.
'China's global role makes it increasingly consequential in tackling the biggest global challenges, from climate change to global health to financial stability.
'We will seek a trade and investment relationship that supports secure and resilient growth and boosts the UK economy.'
But the strategy acknowledged 'several major areas, such as human rights and cyber security, where there are stark differences and where continued tension is likely'.
The report noted: 'Instances of China's espionage, interference in our democracy and the undermining of our economic security have increased in recent years.
'Our national security response will therefore continue to be threat-driven, bolstering our defences and responding with strong counter-measures.
'We will continue to protect the Hong Kong community in the UK and others from transnational repression.'
The China audit recommended 'an increase in China capabilities across the national security system'.
'That includes creating the basis for a reciprocal and balanced economic relationship, by providing guidance to those in the private or higher education sectors for which China is an important partner,' the strategy said.