FAC: Business with China comes with “strings attached”

The Foreign Affairs Committee today (Friday 22 March) publishes the Government response to its report “Tilting horizons: the Integrated Review and the Indo-Pacific”. 

The report criticised the Government’s lack of coherence in its approach to China and called for it to publish an unclassified version of its China Strategy, with sector-specific guidance for industries of critical national importance. In today’s response, the Government argues that it has “clearly set out its approach to China” in the Integrated Review Refresh and says that “it does not intend to publish an additional China Strategy and we have not committed to do so”. 

The Committee had urged the Government to announce a clear policy of zero tolerance of transnational repression, which may require the expulsion of foreign diplomats, and recognise that the repeated attacks on Hong Kong dissidents are part of a wider Chinese Communist Party policy of repression. The Government agrees on the need to recognise repeated attacks against Hong Kong dissidents and to call out foreign interference. It disagrees with the Committee’s recommendation for a zero-tolerance approach to transnational repression, saying that the Government’s clear position is that all foreign diplomats and consular staff in the UK are obligated to comply with UK law regardless of their privileges and immunities.  

The Committee found that the Government has failed to sanction any UK companies for human rights abuses within their supply chains. In today’s response, the Government refers to its sanctioning of four Chinese officials in March 2021 for serious human rights violations and argues that continues to work with partners to hold China to account for its “egregious human rights violations in Xinjiang, including at the United Nations”.  

The Committee also called for the UK to engage with Taiwan to protect Taiwan democracy by building up resilience and defence against malicious actors. The Government’s response says it does not support any unilateral attempts to change the status quo. It says that the UK is increasingly concerned by the consequences should peace and stability fail in the Taiwan Strait – including the threats to supply chains and the global economy. It adds that China’s continued military activity near Taiwan is part of an ongoing pattern of escalatory activity and not conducive to peace and stability in the Taiwan Strait. 

The Committee’s report welcomed the Government’s focus on the Indo-Pacific but warned that this shift should not be at the expense of regions such as the Middle East. In today’s response, the Government maintains that “the Integrated Review Refresh was clear that the Middle East is a geographic priority”. 

The Government agrees to the Committee’s recommendation to set a timetable for signing a digital partnership with the Republic of Korea, though it does not specify a time scale. The response also agrees with the recommendation to consider attending the Pacific Islands Forum. The Government agrees that there is an opportunity for the UK to work with India to establish global norms and standards for many areas of joint interest, in particular when it comes to data. 

Chair of the Foreign Affairs Committee, Alicia Kearns MP, said:  

“The Government’s refusal to publish an unclassified China Strategy leaves UK businesses, academia, civil society and even the civil service in a state of uncertainty on how to respond to threats from the Chinese Communist Party. Over the past two and a half years the Committee has heard repeatedly from experts that the lack of guidance from Government has left them stumbling in the dark.

“Successive UK governments have been naïve about the consequences of deepening our ties with China, particularly when it comes to cooperation on technologies and critical national infrastructure. It is now evident that business with China comes with strings attached, even if they are not immediately apparent.  

“We are not calling for sensitive documents or intelligence to be made public; the Government’s response to our report appears to misunderstand this. Policymakers need to understand the direction of travel when it comes to the UK’s future relationship with China, and UK businesses and public-sector organisations need to know exactly where lines have been drawn. Government alone can provide this clarity.   

“The incarceration of Uyghur Muslims and the use of forced labour in detention camps is a crime against humanity and Parliament has already called this a genocide. Products made using Uyghur forced labour have no place in the UK. 

“Sanctions are an important geopolitical lever. While the Government disagrees that it lacks resolve in sanctioning against Uyghur forced labour, they have failed to provide evidence that they have sanctioned companies with forced labour in their supply chains. The sanctioning of four Chinese officials and one entity, a Chinese security company, three years ago, is completely insufficient. 

“Some individuals, such as John Lee Ka-chiu, the Chief Executive of Hong Kong, have been allowed to operate unrestrained, despite only this week presiding over the implementation of an unconstitutional National Security Law which violates the Sino-British Joint Declaration, and which has been used to prosecute a British citizen, Jimmy Lai. CCP officials who brutalised Hong Kongers protesting on the streets of Manchester were allowed to leave Britain with no consequences, and Uyghur blood labour products continue to flood our markets whilst the US and the EU take action.

“In our report we recognised the need to continue to cooperate closely with Taiwan, to help achieve its peaceful objectives and strengthen its resilience. This is not a threat to the CCP but a realisation of friendship with a fellow democracy. The Government should be brave enough to re-affirm, within Whitehall and outside, that it acknowledges but does not recognise the One China policy.  

“The UK’s Tilt to the Indo-Pacific is welcome and significant effort from Government has seen many welcome investments in our diplomatic relationships in the region. This is a rich and diverse geopolitical region which is home to over half the world’s population. The Committee believes the UK must be resolute in its defence of rule-abiding nations, and deploy a strategy of proactive deterrence. This is not a threat to any other nation, but a protection of that which protects the UK and our allies.

“The Committee intends to write to the Foreign Secretary to request further information on a number of points.”