The Government has conceded that “some Chinese action crosses the line from influence to interference” and that more steps are necessary to protect UK interests.
Ministers published their response to a landmark report on China by Parliament’s spy agency watchdog, after a week in which reports swirled of possible Chinese espionage in Westminster.
The Intelligence and Security Committee (ISC) warned in its July report that Chinese intelligence targets the UK “prolifically and aggressively” and that Britain’s response to the security threat was “completely inadequate”.
It remains an absolute priority for the Government to take all necessary steps to protect the United Kingdom from any foreign state activity which seeks to undermine our national security, prosperity and democratic values— Rishi Sunak
In its reply, tabled by Rishi Sunak, the Government acknowledged that more investment is needed to ensure the UK has the resources it needs to respond to the “long-term” challenge the rising Asian power poses.
It also recognised that Chinese recruitment schemes have tried to “headhunt” British nationals in “key positions with sensitive knowledge and experience” including from Government and the military.
Asked how any additional investment might be used, the Prime Minister’s official spokesman said: “Obviously it would vary. We do recognise there is further investment that will be needed to give us the tools and expertise. Some of that I obviously couldn’t get into”.
Downing Street insisted there were “significant rules and protections in place when it comes to individuals in sensitive roles.”
Beijing has sought to hire former political figures into lucrative roles in Chinese companies in its efforts to strengthen its influence, the ICS report found, even pointing to a “revolving door between the Government and certain Chinese companies”.
In their response, ministers said: “The Government recognises that Chinese recruitment schemes have tried to headhunt British and allied nationals in key positions and with sensitive knowledge and experience, including from Government, military, industry and wider society.
“As the committee notes, there is more work to be done.”
The Prime Minister has faced pressure to toughen his stance towards Beijing after he arrest of a parliamentary researcher on suspicion of spying for China.
The arrest of the Briton – who maintains he is completely innocent – under the Official Secrets Act led to Mr Sunak confronting Chinese premier Li Qiang at the G20 summit in India om Sunday over “unacceptable” interference in democracy.
It also emerged this week that the Conservative Party dropped two potential candidates to become MPs after MI5 warned they could be Chinese spies.
The Prime Minister has riled some China “hawks” on the Tory benches by describing China as an “epoch-defining challenge” instead of the stronger term “threat” he used during last year’s Tory leadership contest.
In his response to the ICS report, Mr Sunak said he was “acutely aware” of the “threat to our open and democratic way of life”.
“It remains an absolute priority for the Government to take all necessary steps to protect the United Kingdom from any foreign state activity which seeks to undermine our national security, prosperity and democratic values.
“I am clear-eyed about that challenge and will call out unacceptable behaviour directly just as I did last weekend with Premier Li at the G20 Summit in New Delhi.”
He pointed to the National Security Act and the Higher Education (Freedom of Speech) Act as examples of Government measures to “enable our law enforcement and intelligence agencies to deter, detect, and disrupt the full range of modern-day threats, including from China”.
The Government also said a ban on Chinese-backed Confucius Institutes would be “disproportionate”, although Mr Sunak promised during the Tory leadership race to shut down the 30 institutions across the UK.
The nine-member ISC raised particular concerns about Chinese influence in UK universities in its report, warning Beijing uses Confucius Institutes to control the narrative around China and to steal academic research.
The Government replied that it “recognises concerns about overseas interference in the higher education sector, including through Confucius Institutes, and keeps the risks under regular review”.
“The Government is taking action to remove any direct or indirect government funding from these institutions in the United Kingdom and currently judges that it would be disproportionate to ban them.”
The 200-page ISC report said the UK’s resources are “completely inadequate” when it came to tackling what committee members labelled China’s “whole-of-state” approach to espionage and interference overseas.
Ministers conceded that “further investment in capabilities will be needed to ensure the Government is equipped with the tools, expertise and knowledge to respond to the systemic challenge that China poses to the United Kingdom’s security, prosperity and values”.
“We will continue building expertise across the system to better address the long-term challenge that China poses.”
