The UK government has been accused of making up its China policy "as it goes along," lacking the promised consistency and potentially increasing national security risks, according to a report by the Business, Innovation, Science and Trade Committee.
The MPs on the committee stated that decision-making regarding China has been characterized by "inconsistency" and called for ministers to block sensitive data transfers, establish clear trading rules, and ban imports produced with forced labor.
The report highlighted that successive governments have failed to reassure the public about adequate measures to protect UK national security and economic resilience. The unpredictability and lack of clear guidance have hindered businesses trading with China. The committee proposed creating "red" and "green" zones to delineate areas for trade and investment versus those that are "off limits."
Additionally, the report advised preparing tariffs for potential imposition if China continues to subsidize its industries or fails to offer reciprocal market access. On the protection of sensitive technology and data, the committee recommended a ban on connected technology devices in critical national infrastructure, noting that the government had "prioritized diplomatic politeness over the UK's national security" by allowing widespread use of low-cost Chinese connected technology.
Universities should also receive "faster advice" on research collaborations with Chinese entities, the report added. Committee chair Liam Byrne stated that businesses cannot plan for the future amid such policy uncertainty, leading to missed opportunities and unmanaged risks. He emphasized the need for Britain to shape its own relationship with China rather than allowing it to be dictated by other global powers.
The business department disagreed with the report's conclusions, asserting that its approach to China is consistent, involving cooperation where possible and challenges when necessary. A spokesperson for the department said the government has placed its relationship with China on a more stable, balanced, and long-term footing based on a clear-eyed assessment of opportunities and risks. The department also noted that its trade strategy aims to capitalize on economic opportunities without compromising national security and that increased discussions with China allow for direct raising of concerns.