Parliamentary Business Committee Condemns Government China Policy
The UK government is making up its policy toward Beijing as it goes along, failing to deliver on a consistent approach and heightening national security risks, MPs warned in a parliamentary report. The 102-page document accuses the government of reactivity and opacity.
The Business, Innovation, Science and Trade Committee stated that decision-making regarding China has been characterized by inconsistency. In contrast, the business department disagreed with the conclusions, maintaining that the government’s approach balances cooperation with challenge on a stable, long-term footing.
Recommendations on Red Zones and Economic Security
The parliamentary report calls on ministers to block sensitive data transfers to China, establish clear trading rules, and ban imports made using forced labour. Committee chair Liam Byrne warned that Britain must shape its own relationship with Beijing rather than allow Washington or Beijing to dictate terms. Liam Byrne added that Human dignity requires a ban on goods made with forced labour.
He further stated, We should welcome trade that builds Britain’s strength. We should stop the trade that puts that strength at risk. That is how we turn engagement into growth, and growth into lasting security.
The committee urged the government to designate specific economic “red zones” off-limits to Chinese trade and investment, alongside permitted “green zones” where commerce is encouraged. Furthermore, the report recommends preparing a tariff regime to counter unfair subsidies and unreciprocal market access.
Unpublished Audits and Political Context
The report criticized the government for re-engaging with China without having finalised its audit or published a strategy. An official audit of the two nations’ relationship was completed in June 2025, but the government withheld its full publication, saying it contained classified information.
Former Prime Minister Sir Keir Starmer previously sought closer economic ties with China while asserting that national security would not be compromised. However, those efforts drew criticism from MPs concerned about alleged espionage activities in the UK.
Frequently Asked Questions
When was the parliamentary committee report published?
The 102-page report by the Business, Innovation, Science and Trade Committee was published on Monday.
What specific trade actions do MPs want the government to take?
MPs recommended banning imports made with forced labour, blocking sensitive technology transfers, creating clear trade rules, and setting up a dedicated tariff regime to counter unfair industrial subsidies.
What is the government’s official stance on trade with Beijing?
The business department stated that its approach involves cooperating where possible and challenging where necessary, maintaining a balanced framework that pursues economic growth without compromising national security.