Ministers have been accused of jeopardizing national security by prioritizing "diplomatic politeness" with China, according to a report from MPs that criticizes Labour's approach to Beijing as the "worst of both worlds." The report from the Business, Innovation, Science and Trade (Bist) committee stated that the "Government keeps making up its China policy as it goes along," leaving British firms exposed to "unquantified, unmanaged risk" and missing out on lucrative commercial deals.

Liam Byrne, chairman of the Bist committee and a Labour MP, said that businesses cannot plan for the future when the government's China policy is inconsistent. He added that Britain must shape its own relationship with China, or risk having that relationship shaped by external powers.

The report acknowledged that disengaging from China is unrealistic, given the annual trade of approximately £140 billion, which constitutes about 7 percent of total UK trade. However, it highlighted that decisions, such as the takeover of British Steel from its Chinese owners, have been characterized by "reactivity, inconsistency, and opacity."

Concerns were also raised about the proliferation of "low-cost, increasingly sophisticated Chinese-connected technology" in the UK. The report warns that this poses a risk to national security through potential spying and remote control capabilities, which could represent a "potential risk to life." MPs recommended the creation of a register of high-risk firms to combat these threats, expressing disappointment that the government prioritized "diplomatic politeness over the UK's national security."

Furthermore, the report addressed the issue of products made with slave labor by repressed Uyghur Muslims in China potentially reaching British shelves. MPs called for the government to "insist on fair trade" and "prevent the transfer of sensitive technologies and data to China."

In response, a government spokesman stated, "Our approach to China is consistent – we will co-operate where we can and challenge where we must." The spokesperson added that the Trade Strategy makes clear the government will "capitalise on every opportunity to grow our economy while never compromising on national security," and that increased discussions with China allow for concerns to be raised directly.

The report's findings have drawn criticism, with Shadow Foreign Secretary Tom Tugendhat describing it as "damning" and accusing Labour of a "dereliction of its duty to the public." He contended that Labour's approach risks economic dependence on a "hostile China."