Labour has been accused of leaving Britain dangerously exposed to Chinese influence, with MPs warning the Government is putting diplomatic relations ahead of national security in a damning new report. The committee of MPs said ministers had pursued a chaotic approach to Beijing, leaving businesses facing uncertainty while failing to properly manage the growing risks posed by the communist state.
Its findings were branded the "worst of both worlds", with the Government accused of re-engaging with China without establishing clear rules governing the relationship. Shadow Foreign Secretary Tom Tugendhat said the report exposed a serious failure by Labour to protect Britain's interests.
Shadow Foreign Secretary's Warning
He told The Daily Mail: "Labour are distracted and allowing Beijing to dictate terms, risking economic dependence on a hostile China. This is unacceptable."
"The Government's disjointed, last-minute approach leaves Britain weak and susceptible to Chinese control."
The chairman of the Business, Innovation, Science and Trade Committee (Bist), Labour MP Liam Byrne, also delivered a stinging assessment of the Government's handling of relations with Beijing.
Committee Chairman's Criticism
He said: "Businesses cannot plan for the future when the Government keeps making up its China policy as it goes along. Ministers promised clarity and consistency."
"Instead, we have opportunities missed, risks unmanaged and decisions left until the eleventh hour. Britain must shape its own relationship with China, or risk having that relationship shaped for us in Washington or Beijing."
The report warned that low-cost, increasingly sophisticated Chinese-linked technology had spread across Britain, raising concerns about the potential security implications. MPs called for a register of high-risk firms and jurisdictions, arguing that the Government had failed to take adequate action to protect sensitive British technology and data.
Security and Trade Concerns
They concluded: "We are disappointed that, in failing to create a register of high-risk jurisdictions, the Government has prioritised diplomatic politeness over the UK's national security."
The committee also raised concerns about the growing popularity of cheap Chinese electric vehicles, warning that their ability to be controlled remotely could pose a potential risk to life. It highlighted the danger of products manufactured using forced labour by Uyghur Muslims in China's Xinjiang region finding their way onto British shelves.
The findings come amid wider concerns about Beijing's activities in Britain. In June, two men were convicted of operating Chinese "shadow policing" operations on British soil, targeting Chinese dissidents and MPs who supported them.
Labour has also faced criticism over its decision to approve plans for a massive new Chinese embassy on the former Royal Mint site in London in January, despite concerns about espionage. Under Sir Keir Starmer's previous government, ministers refused to publish a full review of Britain's relationship with China, releasing only a short summary on the grounds that disclosing the findings could damage British interests.
Government Response and Recommendations
The committee acknowledged that cutting ties with China altogether was neither realistic nor desirable, given annual trade between the two countries is now worth £140billion, around seven per cent of Britain's total trade. However, it criticised the Government's handling of major decisions, including the takeover of British Steel from its Chinese owners, which has cost £1.3million a day. It also highlighted the Government's last-minute decision to block Chinese firm Ming Yang's proposed £1.5billion wind turbine factory investment in Scotland, after years of negotiations, over unspecified national security concerns.
MPs said the episode demonstrated the "reactivity, inconsistency, and opacity" of ministers' decision-making. They urged ministers to establish clear rules for economic engagement with China, including designating sensitive sectors where Chinese trade and investment should be prohibited, and areas where it could be permitted with safeguards.
The committee also called for stronger supply chains, protection of sensitive technologies and data, and a ban on imports made using forced labour. A Government spokesman rejected the committee's conclusions, saying: "Our approach to China is consistent – we will co-operate where we can and challenge where we must."
"Our Trade Strategy makes clear that we will capitalise on every opportunity to grow our economy while never compromising on national security. Increased discussions with China allow us to directly raise concerns where they arise."
