A new report from Members of Parliament (MPs) has sharply criticized the Labour party's approach to China, warning that the UK's national security is being jeopardized by a policy described as "making up its China policy as it goes along." The report, compiled by the business, innovation, science and trade committee (Bist), suggests that ministers have prioritized "diplomatic politeness" with Beijing, leading to "unquantified, unmanaged risk" for British firms and the nation.

The committee's findings indicate that this reactive and inconsistent approach has resulted in missed commercial opportunities and left Britain increasingly exposed to Chinese influence. Labour's handling of relations with China has been described as "the worst of both worlds," with a lack of clarity hindering businesses' ability to plan for the future.

MPs highlighted concerns about the proliferation of "low-cost, increasingly sophisticated Chinese-connected technology" within the UK, suggesting the government should establish a register of high-risk firms. The report also pointed to the potential risks associated with products manufactured using slave labor from the Xinjiang region, and the security implications of Chinese electric vehicles, which could pose a "potential risk to life" through remote control capabilities and spying.

In January, plans for a new Chinese mega embassy on the old Royal Mint site were approved despite concerns about spying. The report criticizes the government for failing to create a register of high-risk jurisdictions, thereby prioritizing diplomatic politeness over national security. Shadow foreign secretary Tom Tugendhat echoed these criticisms, accusing Labour of a "dereliction of its duty" and allowing Beijing to dictate terms, risking economic dependence on a "hostile China."

The committee acknowledged that complete disengagement from China is neither realistic nor desirable, given the annual trade volume of approximately £140 billion. However, it stressed the need for a reset in the relationship, calling for insistence on "fair trade" and measures to prevent the transfer of sensitive technologies and data to China.

A government spokesperson stated that their approach to China is consistent, involving cooperation where possible and challenges where necessary, and that their Trade Strategy aims to grow the economy without compromising national security. The spokesperson added that increased discussions with China allow for direct raising of concerns. The committee, however, found that Labour had re-engaged with Beijing "without establishing the rules of the game."