A parliamentary committee has raised concerns that the United Kingdom’s approach to China lacks a clear and consistent strategy, potentially exposing the country to security risks and missed economic opportunities. The Commons business, innovation, science and trade select committee warned that the government’s China policy since 2024 has combined “the worst of both worlds,” leaving British businesses unable to plan effectively and increasing vulnerabilities in trade relations.
The report, led by Labour MP Liam Byrne, who chairs the committee, criticizes the government for failing to deliver on its 2024 promise of a long-term, coherent China strategy. Byrne stated that ministers have been “making up [China policy] as they go along,” which has led to missed chances for growth and unmanaged risks. He highlighted concerns that the UK could become subject to external influence from either Washington or Beijing if it does not develop an independent and decisive approach.
Among the specific issues cited is the decision in March to block a £1.5 billion investment from the Chinese firm Ming Yang to build a wind turbine manufacturing plant in Scotland due to security concerns. This move followed an emergency takeover of British Steel from Chinese ownership, actions described in the report as reactive, inconsistent, and lacking transparency. Scotland’s First Minister John Swinney has urged a reconsideration of the decision by Labour leadership.
The committee points out that while trading with China offers clear benefits—including British companies operating profitably in the Chinese market and consumers enjoying affordable imports such as electric vehicles—there are growing fears around deindustrialization, cyber-espionage, and national security threats. The UK’s relatively low engagement with China over the past decade, including only a recent official visit in January by Labour leader Keir Starmer—the first since 2018—has coincided with a period of expanded Chinese exports.
The report recommends the government develop a formal China strategy that includes designating “red zones” of industries closed to Chinese investment and “green zones” where trade and collaboration are encouraged. It also calls for preparations of new trade remedies to address unfair competition, such as potential tariffs on Chinese electric vehicles, aligning with similar measures already adopted by the European Union (EU).
Byrne stressed that as the European trade environment evolves, the UK risks being left outside important EU trading frameworks, which could threaten access to a major market. He urged consideration of dynamic alignment with the EU, including tariffs on EVs, to maintain British companies’ participation in the EU’s “Made in Europe” initiatives and to counterbalance China’s growing economic influence.
The UK government responded by stating it will cooperate with China where possible and confront challenges where necessary, without providing further details. Business Secretary Jonathan Reynolds has indicated that decisions on trade measures, including EV tariffs, will be made based on what is in the best interests of the UK. Meanwhile, the EU continues to impose restrictions on Chinese imports and is considering additional tools to deter trade weaponization following previous disputes with China over critical materials and technology exports.