The UK government has been accused of "dragging its heels" over a critical decision to formally designate China as a heightened national security threat, according to the parliamentary intelligence watchdog. The warning comes amidst ongoing tension following a collapsed espionage case and stark alerts from MI5 about the risks posed by Beijing.
Watchdog Demands Clarity on China's Threat Status
In its annual report, the Intelligence and Security Committee (ISC) – a body composed of senior MPs and peers – expressed serious concern over the government's delay in deciding whether to add China to the enhanced tier of the Foreign Influence Registration Scheme (FIRS). This scheme, which became active in July 2025, mandates that individuals conducting "political influence activities" for a foreign state must register with the authorities or face legal consequences.
Currently, only Russia and Iran are listed on the enhanced tier, which imposes stricter rules requiring registration for any activity undertaken on their behalf, not solely political work. Elevating China to this level would mean that anyone in the UK working under instruction from Beijing would be compelled to disclose their activities to the government.
"Given the extent of the threat posed by China (as identified in the committee’s 2023 China Report), and particularly that of its interference operations, we are concerned to see the government dragging its heels on this decision," the ISC stated.
Balancing Security and Prosperity
The report acknowledged the need for "dexterity" in managing the complex relationship with China, balancing security risks with economic interests. However, it reiterated previous findings that the government has shown a "reluctance to prioritise security considerations" where China is involved.
This critique arrives at a diplomatically sensitive time. Prime Minister Sir Keir Starmer is preparing for his first bilateral visit to China, expected in January or February 2026, as part of efforts to bolster economic and diplomatic ties. The government's challenge is compounded by recent events, including the collapse of a high-profile Chinese spying case and persistent warnings from security service MI5.
Security Minister Dan Jarvis told the Commons in early December that the decision on China's tier status was under "very close review," promising more information in due course.
Calls for Transparency and Reform
The ISC has demanded transparency once a decision is reached. "The government should swiftly come to a decision... This committee should be provided with a full account of how that decision was arrived at, including the factors that were considered, to ensure that security concerns have not been overlooked in favour of economic considerations," the report urged.
In a positive note, the committee described a July meeting with Sir Keir Starmer – the first such engagement with a prime minister in over a decade – as a "very positive reset" in its relationship with the government. The ISC also repeated its long-standing call for reform of the Official Secrets Act.
A government spokesperson responded, stating: "National security is the first duty of this government. We value the ISC’s independent oversight... 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 co-operate where we can and challenge where we must."
