A four-year inquiry by MPs exposes the scale of China’s ‘existential threat’ to Britain

Kim Sengupta examines the disturbing findings of the intelligence committee report into espionage by Beijing

Is anyone listening? The proposed site for the new Chinese embassy near Tower Bridge in London (Reuters)

The charges against the government are scathing.

Britain is facing a “nightmare scenario” of China carrying out a systematic intelligence assault on almost every strategic sector against “completely inadequate” defences.

The findings conclude that the UK’s core liberal democratic system is in danger. And that security has been sacrificed for perceived economic gains and the country “severely handicapped” by a short-term approach that is a “serious failure… one that the UK may feel the consequences of for years to come”.

The criticism comes in a report from the House of Commons intelligence and security committee (ISC) that runs to 207 pages, follows four years of investigation, and is one of the most trenchant in recent times.

It finds that, even now, the government does not want “any meaningful scrutiny of sensitive investment deals”. The committee has been denied oversight into these, with a “significant impact on national security and upon the trust placed by the public on ministers who are charged with weighing up fundamental interests behind closed doors”.

Britain faces an assault on its core values, it says. “Without swift and decisive action, we are on a trajectory for the nightmare scenario where China steals blueprints, sets standards and builds products, exerting political and economic influence at every step. This presents a serious commercial challenge, but also has the potential to pose an existential threat to the liberal democratic system.”

Recriminations between the committee and Downing Street over the report were immediate. In a written statement, Rishi Sunak claimed the MPs were dealing with old news and ignoring new developments. “The committee’s inquiry began in 2019 and took the bulk of its evidence in 2020, pre-dating both the Integrated Review 2021 and the Integrated Review Refresh 2023… the government has already taken actions that are in line with many of the committee’s recommendations,” he said.

Labour MP Kevan Jones, a former defence minister, called the response “weak”, adding: “It shows you, I think, the depth to which the government is trying to again undermine the committee.”

Sir Julian Lewis, who chairs the committee, pointed out that its members receive quarterly reports from MI6, MI5 and GCHQ.

The committee makes clear that MI5 director Ken McCallum had stressed to them the seriousness of the situation. “The challenge of the rise of China absolutely raises huge questions for the future of the Western Alliance,” he had told them. “None of us give a confident long-term answer to exactly how the balance of power plays out globally across the next decades, but it is clear for us that this is the central intelligence challenge for us.”

Meanwhile, the head of MI6, Richard Moore, had warned ahead of the report’s publication that the ascent of China is the “single greatest priority” for his service. Beijing is conducting large-scale espionage activities in Britain, he told them, including a focus on those working in government, industry or research of interest to the Chinese state – and is spying on the Chinese diaspora.

Lindy Cameron, head of the National Cyber Security Centre, recently said the West faces an “epoch-defining” challenge from China that needs to be addressed before the country becomes the world’s leading technological power. “China is not only pushing for parity with Western countries, it is aiming for technical supremacy. It will use its tech strength as a lever to achieve a dominant role in global affairs. Bluntly, we cannot afford not to keep pace otherwise we risk China becoming the predominant power in cyberspace,” she said.

Some security officials in Britain, as well as in the United States, have complained of mixed signals sent to China by successive British governments. Two months ago, a group of Democrats and Republicans in Congress came to London to press for a tougher line on Beijing; the group, which included heads of committees, met ministers and MPs as well as a senior UK intelligence official.

While the US security agencies and government liaise closely over China, especially in the energy sector, there is no such unified approach in the UK. This has become a matter of urgent concern, the ISC points out, on the security of Britain’s nuclear infrastructure.

“We question how any department can consider that a foreign country single-handedly running our nuclear power stations shouldn’t give pause for thought,” it notes. “This demonstrates they do not have the expertise for such sensitive security matters.

“We have serious concerns about the incentive and opportunity for espionage that Chinese involvement in the civil nuclear sector provides,” the MPs say.

Money appears to be a recurring theme in dealings with Beijing, the MPs say. “China has been buying up and seeking to control or influence the UK’s industry and energy sector and – until the Covid-19 pandemic – Chinese money was readily accepted by the government with few questions asked.”

The committee also asked if there was “a revolving door between the government and certain Chinese companies, with those involved in awarding contracts being ‘rewarded’ with jobs”. British higher education’s eagerness to accept Chinese research grants has led to some being “willing to turn a blind eye, happy simply to take the money”, they say.

While offering lucrative enticements, China is also engaged in subterfuge in education, the report warns. “Academia is an easy option when it comes to the theft of intellectual property with China taking advantage of collaborative projects to steal information which may be less protected. It is alarming there is still no single list of the areas of sensitive UK research which needs protecting.”

Conservative MP Sir John Hayes called the findings “quite disturbing”, adding that China has the “largest intelligence set up in the world now … and this country is a primary target”.