Labour is 'making up' China policy on the hoof: MPs' damning report says UK security is at risk because ministers don't want to offend Beijing

Ministers have been accused of jeopardising national security by prioritising 'diplomatic politeness' with China.

A report from MPs today criticises Labour's approach to Beijing as the 'worst of both worlds'.

In a devastating indictment of its dealings with the communist state, the chairman of the business, innovation, science and trade committee (Bist) said the 'Government keeps making up its China policy as it goes along'.

Firms have missed out on lucrative commercial deals as Britain has been left increasingly exposed to 'unquantified, unmanaged risk', the report adds. 

Last night the committee put pressure on the Prime Minister to clarify his stance on closer dealings with the Chinese Communist Party.

'We await confirmation of how much continuity there is between the approaches to China of the Starmer and Burnham governments,' the MPs said.

Last year Labour, under Sir Keir Starmer, refused to publish a Government review of relations with China, releasing only a short summary and arguing that publishing the full findings could damage British interests.

In June, two men were convicted of running 'shadow policing' operations on British soil, spying on Chinese dissidents and MPs who supported them.

Labour ministers have been accused of jeopardising national security by prioritising 'diplomatic politeness' with China. Pictured: PM Andy Burnham, then Mayor of Manchester, with China's Consul General Tang Rui on April 17, 2026

Labour's Ed Miliband shakes hands with Wang Hongzhi, head of China's National Energy Administration, at the China-UK Energy Dialogue in Beijing, China on March 17, 2025

Labour was accused of pandering to China after plans for a new mega embassy on the old Royal Mint site were approved in January, despite spying fears. Pictured: A concept grapohic for the proposed embassy 

Labour was accused of pandering to China after plans for a new mega embassy on the old Royal Mint site near the Tower of London were approved in January, despite spying fears.

Shadow foreign secretary Tom Tugendhat has described the report as 'damning' and accused Labour of overseeing a dereliction of its duty to the public.

He told the Daily Mail: 'Labour are distracted and allowing Beijing to dictate terms, risking economic dependence on a hostile China. This is unacceptable. The Government's disjointed, last-minute approach leaves Britain weak and susceptible to Chinese control.'

The report warns that 'low-cost, increasingly sophisticated Chinese-connected technology has proliferated in the UK' and says the Government should create a register of high-risk firms to combat the threat associated with this.

It concludes: 'We are disappointed that, in failing to create a register of high-risk jurisdictions, the Government has prioritised diplomatic politeness over the UK's national security.' However, the Government last night rejected the Bist committee report and said it 'disagrees with its conclusion'.

The committee found that Labour has re-engaged with Beijing 'without establishing the rules of the game'.

Its chairman, Labour MP Liam Byrne, said: 'Businesses cannot plan for the future when the Government keeps making up its China policy as it goes along. Ministers promised clarity and consistency. 

'Instead, we have opportunities missed, risks unmanaged and decisions left until the eleventh hour. Britain must shape its own relationship with China, or risk having that relationship shaped for us in Washington or Beijing.'

 China's President Xi Jinping, right, and Britain's then Prime Minister Keir Starmer, left, shake hands before their meeting at the Great Hall of the People in Beijing on January 29, 2026 

Bill Yuen, 65, (l) and Peter Wai, 41, (r) were convicted in June following a trial at the Old Bailey. Wai was found guilty of running a Chinese 'state intelligence service' on British soil while working as a UK Border Force officer, on the orders of former Hong Kong superintendent Yuen

The report also found products made with slave labour by repressed Uyghur Muslims ending up on British shelves. Pictured: Buildings north of Kashgar in China's northwestern Xinjiang region believed to be a re-education camp where mostly Muslim ethnic minorities are detained

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Mr Byrne added that 'we should welcome trade that builds Britain's strength' but cease dealings that 'put that strength at risk'.

The committee recognised that disengaging from China is neither realistic nor desirable as annual trade with Beijing is now £140billion a year – about 7 per cent of total UK trade.

However it added that changes need to be made as the Government's decision-making on China – such as the takeover of British Steel from the firm's Chinese owners at a cost of £1.3million a day – has been characterised by 'reactivity, inconsistency, and opacity'.

MPs also raised concerns about the increasing adoption of cheap Chinese electric cars. These devices pose a risk to national security through spying and the ability to control vehicles remotely is a 'potential risk to life', the report adds.

The report is also damning on the risk of products made with slave labour by repressed Uyghur Muslims in the Xinjiang region ending up on British shelves.

In order to reset Britain's relationship with China, MPs have called on the Government to 'insist on fair trade' to create a 'level playing field'. Ministers should also 'prevent the transfer of sensitive technologies and data to China'.

A Government spokesman said: 'Our approach to China is consistent – we will co-operate where we can and challenge where we must. 

'Our Trade Strategy makes clear that we will capitalise on every opportunity to grow our economy while never compromising on national security. Increased discussions with China allow us to directly raise concerns where they arise.'