A UK parliamentary committee has criticised the government for failing to deliver a clear and consistent strategy for managing Britain’s economic and security relationship with China, warning that the absence of defined policies is creating uncertainty for businesses.
In a report published on Monday, November 2, the House of Commons Business, Innovation and Science and Trade Committee said the government had not fulfilled its 2024 promise to establish a strategic, long-term and consistent approach to China.
The committee said ministers had pursued closer engagement with Beijing without completing the government’s China audit or publishing a comprehensive strategy to guide that relationship.
According to “the committee’s official report” , the government’s decisions on China have been characterised by inconsistency, limited transparency and last-minute interventions.
Uncertainty Over Trade and Investment
The report highlighted decisions involving Chinese investment in Britain, including the government’s late-stage blocking of plans by Chinese company Ming Yang to build a wind turbine factory in Scotland on national security grounds.
It also cited the emergency takeover of British Steel from its Chinese owners as an example of decisions that have contributed to uncertainty over the government’s approach.
Committee members warned that businesses need clearer guidance on which areas of trade and investment with China are permitted, which require safeguards and which should be restricted.
The committee’s chair, Liam Byrne, said British businesses could not plan effectively when the government appeared to be making decisions about its China policy as situations developed.
“The Guardian’s report on the committee’s findings” also highlighted concerns that Britain’s lack of a defined approach could expose the country to unmanaged economic and national security risks.
Committee Calls for Clearer Rules
The committee recommended that the government establish a framework for what it described as risk-managed growth with China.
Its proposals include clearer restrictions on Chinese involvement in sensitive sectors, stronger protection for critical supply chains and support for British companies seeking legitimate trade opportunities in the Chinese market.
It also called for action against unfair competition, including concerns about heavily subsidised imports and products made using forced labour.
The report does not call for Britain to end trade with China. Instead, it argues that the government should distinguish between areas where economic cooperation can benefit the UK and that where national security or economic resilience could be compromised.
The government is expected to respond to the committee’s report within two months.
