The British government’s short-termist approach to China has left it “severely handicapped” in tackling Beijing’s economic dominance and spying, the UK Parliament’s Intelligence and Security Committee said.
“China’s size, ambition and capability have enabled it to successfully penetrate every sector of the UK’s economy,” the panel of lawmakers said in a report published Thursday. “The government has been so keen to take Chinese money that it has not been watching China’s sleight of hand whilst it overtly penetrated the UK’s energy and industry sectors.”
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The long-awaited report put pressure on Rishi Sunak’s administration, which is trying to take a more nuanced approach to relations with Beijing than his more hawkish predecessors. The prime minister is trying to strike a balance, recognizing China’s economic heft while also acknowledging concerns around national security and human rights and the demands for a more hardline approach from members of his governing Conservative Party.
The committee raised particular concern for infiltration of Britain’s academic institutions and energy sector, warning that the “UK is now playing catch-up – and the whole of the government has its work cut out to understand and counter China’s ‘whole-of-state’ threat.” The panel reasserted the position of spies and officials who have concluded that China offers the biggest state security threat to Britain, by “prolifically and aggressively” targeting the UK.
“Without swift and decisive action, we are on a trajectory for the nightmare scenario where China steals blueprints, sets standards, and builds products, exerting political and economic influence at every step,” the committee said.
In response, Sunak defended his government’s approach, which he said has been updated since the panel began its investigation.
“We are not complacent and we are keenly aware that there is more to do,” Sunak said in a written statement to Parliament. “We will continue to engage with China to preserve and create space for open, constructive, predictable and stable relations that reflect China’s significance in world affairs and to ensure our interests and those of our allies are best advanced,” he said.
A planned trip by Foreign Secretary James Cleverly to China in the coming weeks has still not been officially confirmed as officials thrash out details of the agenda. He and Sunak have spoken of China as an “epoch-defining challenge” rather than an explicitly threat to the UK’s security, even as minister recently accused Beijing of running secret police stations in Britain.
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But MPs on the committee hit back at Sunak’s suggestion that the report is outdated. Kevan Jones called the government’s response “pretty weak,” while the chairman, Conservative Julian Lewis, said it was “defensive.”
China’s is targeting telecommunications, aerospace, artificial intelligence, engineering, energy and academia in Britain using both investment and espionage, the report found. The panel is particularly concerned over involvement in areas of critical national infrastructure such as nuclear power plants. Closed-door ministerial decision-making of sensitive investment should have greater oversight by the committee to balance risk, it said.
“I hope this is a wake-up call,” Theresa Villiers, one of the MPs on the committee, said at a press conference Thursday.
