UK PM Rishi Sunak. FILE/Reuters.
The British government acted too slowly in reaction to Chinese influence, resulting in a “serious failure” and “one that the UK may feel the consequences of for years to come,” a cross-party committee of lawmakers said Thursday.
China’s size and ambition have allowed it to successfully penetrate every sector of the UK economy, according to an influential parliamentary panel, which warns that Beijing’s national imperative to remain a technological and economic superpower on which other countries rely is the “greatest risk” to the UK.
The House of Commons Intelligence and Security Committee (ISC) said in a wide-ranging report released on Thursday that the intelligence threat posed by China is compounded by a “whole-of-state” approach with the use of state and non-state players for spying.
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The report highlights China’s economic security threat to the UK, emphasizing the need for long-term planning. Deputy Prime Minister Oliver Dowden recently labelled China as the “largest state-based threat” to Britain’s economic security. However, he expressed no intention to sever ties with the country.
Commissioned in 2019, the inquiry by the ISC examines China’s threat across academia, industry, and technology. The report reveals that China aims to acquire information and intellectual property by influencing elites and decision-makers.
It also highlights the potential for espionage and interference through the involvement of Chinese companies, academic institutions, and citizens.
The committee acknowledges that China views the UK as a significant target for espionage and interference due to its close relationship with the US. However, it falls just below China’s top priority targets.
To safeguard the future security of the UK, the committee urges the government to adopt a longer-term planning cycle. It emphasizes the importance of addressing security concerns without being overshadowed by economic interests tied to election cycles.
The committee, consisting of MPs and peers responsible for scrutinizing intelligence agencies, also calls for an immediate review of China’s continued participation in the nuclear industry.
Committee member Lewis warns of a potential “nightmare scenario” where China steals blueprints, sets standards, and exerts influence, posing a severe threat to liberal democratic institutions. He stresses the need for swift and decisive action.
Prime Minister Rishi Sunak aims to strike a balance between neutralizing security threats from China and maintaining engagement in trade, investment, and climate change.
Sunak points out that the committee’s evidence predates the 2021 Integrated Review and subsequent updates in 2023. He claims that the government has already taken actions aligned with the committee’s recommendations.
However, Labour MP Kevan Jones criticizes Sunak’s response, suggesting that the issues highlighted in the report were known but not adequately addressed.
The US has been urging the UK to adopt a firmer stance against China, given escalating tensions and concerns over protectionism and espionage.
The report reveals China’s extensive reach across the UK’s economy, successfully penetrating every sector. It highlights China’s effective use of money and influence to influence academia and advance its international narrative.
Earlier this year, the UK government updated its foreign and defence policy, describing China as an “epoch-defining challenge,” although it refrained from directly labelling it a “threat.”
According to recent figures, the UK has utilized its national security powers to scrutinize Chinese-linked investments in British companies. The government’s concern over China’s potential influence in vital industries is evident, with eight transactions called in and 40% of the 65 investments scrutinized associated with China.
Despite these measures, the ISC criticizes the government for lacking independent oversight of the decisions made under the National Security and Investment Act.
The report’s findings underscore the economic security threat posed by China to the UK and called for tougher action in the government’s “robust” and “clear-eyed” approach.