Government making up China policy as it goes along, say MPs

The government has failed to deliver on its promise to pursue a consistent approach towards China and is instead making up policy "as it goes along", MPs on the Business Committee have said. In its report, the Business, Innovation, Science and Trade Committee said decision-making had been characterised by "inconsistency" and was heightening national security risks. It called on ministers to block the transfer of sensitive data to China, give businesses clear rules for trading with the superpower, and ban imports made using forced labour. The business department said it disagreed with the report's conclusion, adding: "Our approach to China is consistent - we will co-operate where we can and challenge where we must." It said the relationship had been placed on "a more stable, balanced, long-term footing, and based it on a clear-eyed assessment of both the opportunities and the risks". The department added that its trade strategy would capitalise on every opportunity to grow the economy while never compromising national security, and that increased discussions with China allowed concerns to be raised directly where they arise. Former Prime Minister Sir Keir Starmer had sought to pursue a closer relationship with China, arguing that the UK could not afford to ignore economic opportunities, while insisting that should not mean compromising on national security. However, efforts to build ties were criticised by some MPs concerned about China's alleged spying activities in the UK. An audit of the two countries' relationship was carried out last year, but the government has not published the document in full, saying it contained classified information. Sir Keir's successor Andy Burnham has yet to set out his position on relations with China. In its report, the committee said successive governments had "failed to reassure" the public they had taken "adequate measures to defend UK national security and economic resilience". The MPs said the unpredictability of government approaches and a lack of clear guidance had hindered businesses' ability to trade with China. It proposed setting up "red" and "green" zones to clearly define where trade and investment would be encouraged and which areas were "off limits". The committee said the government should insist on fair trade with China and advised preparing tariffs that could be imposed if the country continued to subsidise its industry or failed to offer "fully reciprocal" market access. On protecting sensitive technology and data, the report said there should be a ban on connected technology devices being used in critical national infrastructure. The committee said "low-cost" Chinese connected technology had become widespread in the UK and that in this area the government had "prioritised diplomatic politeness over the UK's national security". It also recommended that universities receive "faster advice" on conducting research with Chinese bodies. Committee chair and Labour MP Liam Byrne said: "Britain's businesses cannot plan for the future when the government keeps making up its China policy as it goes along." He added: "Ministers promised clarity and consistency. Instead, we have opportunities missed, risks unmanaged and decisions left until the eleventh hour." He warned: "Britain must shape its own relationship with China, or risk having that relationship shaped for us in Washington or Beijing."