Long-Term Strategic Challenges Posed by China

Earl Howe Excerpts

Thursday 19th October 2023 Lords Chamber

Moved by

[Earl Howe]

That this House takes note of His Majesty’s Government’s position on the long-term strategic challenges posed by China.

[Earl Howe (Con)]

My Lords, in what has turned out to be a troubled and turbulent year in global affairs—from the war in Ukraine to bitter conflict in the Middle East and renewed conflict in Asia and Africa, alongside a range of humanitarian crises across several continents —it is important that we should give ourselves time in this House to consider the long-term perspective on our country’s international interests and priorities. In that context, few countries in the world assume as great a relevance to long-term global stability and prosperity as the People’s Republic of China. I therefore welcome the opportunity to commence this debate by explaining the policy approach of His Majesty’s Government to the many facets of our relationship with China.

The House will remember that in 2021 the Government’s integrated review assessed that China’s increasing assertiveness and growing impact on many aspects of our lives will be one of the defining factors of the 21st century. Earlier this year, the integrated review refresh explained how we are responding head-on to a more volatile and contested world. It recognised the major events of the last two years and the epoch-defining and systemic challenge that China presents in terms of military, diplomatic and economic activity. It also set out the three pillars of the Government’s approach to China: protecting our national security, aligning with our allies and partners and engaging with China where it is in the UK’s interests to do so. In speaking of our interests, let me be clear: when there are tensions with other objectives, we will always put our national interests and security first.

In his Mansion House speech in April, my right honourable friend the Foreign Secretary explained the Government’s policy on China in some detail. A starting point for our approach must be to recognise

“the depth and complexity of Chinese history and civilisation”.

One of the greatest strengths of our relationship are the personal and cultural links between the people of our countries. The British-Chinese diaspora plays an important role in our communities and our culture and we continue to welcome hundreds of thousands of Chinese students to the UK, always working to ensure that they are treated as well as any other students, whether from Britain or elsewhere.

Just now I used the phrase “epoch defining”. Let me therefore explain the systemic challenge that China under the Chinese Communist Party represents. Like it or not, we must recognise that China is becoming more authoritarian at home and more assertive overseas. Internationally, China’s new approach to multilateralism is challenging the centrality of human rights and freedoms in the UN system. Within its borders, people face growing restrictions on fundamental freedoms, and the Chinese authorities continue to commit widespread human rights violations. Internationally, China is failing to live up to its commitments, as well as to guarantees in its own constitution. Along with our partners, we want to see all countries respect fundamental freedoms and the rights of ethnic minorities. We expect China, as a leading member of the international community, to adhere to the legally binding agreements it has freely signed up to.

In Xinjiang, members of Uighur and other predominantly Muslim minorities continue to suffer serious violations of their human rights. The UN Office of the High Commissioner for Human Rights has concluded, relying extensively on China’s own records, that Beijing’s actions in Xinjiang

“may constitute international crimes, in particular crimes against humanity”.

In Hong Kong, China’s imposition of the national security law has seen opposition stifled and dissent criminalised. Three years on, we have seen how this opaque and sweeping law has undermined rights and freedoms enshrined in the joint declaration and in Hong Kong’s own basic law. Alternative voices across Hong Kong’s society have been all but extinguished, and changes to electoral rules have further eroded the ability of Hong Kongers to be legitimately represented at all levels of government. Hong Kong’s governance, rights and social systems are now closer to mainland norms.

Turning to the wider region, China’s increased assertiveness in the South China Sea and the Taiwan Strait threatens to bring danger, disorder and division, risking the rule of law and global security and prosperity. China has rapidly modernised its military and done so in an opaque manner. It has militarised disputed islands in the South China Sea. We in the UK have a clear interest in peace and stability in the Taiwan Strait. We have no diplomatic relations with Taiwan but a strong unofficial relationship, based on deep and growing ties in a wide range of areas, and underpinned by shared democratic values. As the Foreign Secretary outlined in his Mansion House speech, the UK believes that the tensions over Taiwan must be settled by the people on both sides of the strait through constructive dialogue, without the threat or use of force or coercion. We do not, and will not, support any unilateral attempts to change the status quo.

As I mentioned, there are three pillars in our approach to China: protect, align and engage. Let me talk first about “protect”. We are strengthening our protections in those areas where China’s actions pose a threat to our people, prosperity and security. The Deputy Prime Minister has spoken of the reported allegations of espionage on behalf of China within Parliament. As the House will expect me to say, I cannot comment on any specific aspect of what is a live investigation. However, it remains an absolute priority for the Government to take all necessary steps to protect the United Kingdom from any foreign state activity that seeks to undermine our national security, prosperity and democratic values.

We have structures in place to identify foreign interference and potential threats to our democracy. These include the new National Security Act, including creating a new offence of foreign interference, and the defending democracy task force, which was established in November last year. These measures supplement steps we have taken to protect the UK’s interests, having created new powers to protect our critical industries under the National Security and Investment Act, having removed Huawei technology from UK 5G networks and having instructed the Chinese embassy to close the so-called Chinese overseas police service stations this year.

On human rights, the UK has led international efforts to hold China to account for its wide-scale violations, including in Xinjiang. We were the first country to lead at the UN a joint statement on China’s human rights record in Xinjiang. I am pleased to say that, just yesterday, the UK led a further joint statement in the UN on the situation in Xinjiang, with 50 other signatories. In this statement, we urged China to end its violations of human rights in Xinjiang, engage constructively with the UN human rights system and fully implement the recommendations of last year’s UN assessment. We have worked tirelessly through our global diplomatic network. Our leadership has sustained pressure on China to change its behaviour and has increased the number of countries speaking out in support of human rights in China.

We have also implemented measures to ensure that UK organisations are not complicit in these violations through their supply chains by introducing new guidance on the risks of doing business in Xinjiang. In addition, we have enhanced export controls and announced the introduction of financial penalties under the Modern Slavery Act 2015. We continue to call China out and pressure it to change course.

On Hong Kong, we have made clear that China’s attempts to use the national security law to pursue self-exiled activists are unacceptable. We will never tolerate attempts by the authorities to intimidate and silence individuals, whether they live in Hong Kong or overseas. In response to the introduction of the national security law in 2020, we acted quickly and decisively to introduce a bespoke immigration route for British national (overseas) status holders and their immediate family members. More than 176,000 BNO visas have been granted by the Home Office, providing a route to UK citizenship. To support their integration into our communities, the Government launched the Welcome Programme in 2021 for Hong Kongers moving to the UK through this route. We welcome the contribution that this growing diaspora makes to life in the UK, just as we welcome the contribution of the diaspora with links to mainland China. We will continue to stand up for the rights and freedoms of the people of Hong Kong—rights and freedoms that China promised to protect when it signed the Sino-British joint declaration.

As the integrated review refresh makes clear, the UK has limited agency to influence China’s actions on our own, which is why we are deepening our alignment with core allies and a broader group of partners. Regional partnerships are especially important in defence and security. We are deepening our engagement with Indo-Pacific countries bilaterally and multilaterally, and with smaller groups of like-minded partners. The Five Power Defence Arrangements, where we work together with Australia, Malaysia, New Zealand and Singapore, reached its 50th anniversary last year. The AUKUS defence partnership with Australia and the US also strengthens regional peace and stability, and the UK has responded positively to requests to build their capacity in maritime security through the AUKUS submarine project.

We have demonstrated our commitment through the successful deployment of the UK carrier strike group to the Indo-Pacific in 2021. It engaged with 40 countries there, and we will also be deploying the littoral response group into the region in 2024. The Prime Minister has announced a further carrier strike group deployment in 2025. Two Royal Navy offshore patrol vessels, now stationed permanently in the region, are further deepening this partnership and supporting capacity building.

The Government recognise that China uses its influence in the global economy to pursue its foreign policy objectives. That brings risks to trade, investment and our supply chains in today’s interconnected world. We monitor this closely and are working to strengthen the UK’s critical supply chain resilience and avoid strategic dependency. This includes international collaboration with allies and partners to discourage trade restrictions and coercive measures.

We are in the final phase of accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which will deepen the UK’s economic ties with partners in the Indo-Pacific region. By acceding to the CPTPP, the UK will join a valuable network of countries committed to the international rules and norms that underpin free trade.

The third and final pillar of our approach to China is “engage”. Here it is essential for us to recognise the size and significance of China’s influence on almost every global issue. China is a major global actor as a G20 member with a permanent seat on the UN Security Council. It accounts for nearly a fifth of the world economy and is a major investor in the developing world. Therefore, no significant global problem can be solved without China. We must engage with Beijing, alongside our partners, on issues that will affect us all. We must continue to engage directly with China towards open, constructive and stable relations to manage disagreements, defend our freedoms and co-operate where our interests align. That is exactly what the Prime Minister did when he met Premier Li Qiang at the G20 New Delhi summit last month, and what the Foreign Secretary did when he met his counterpart Wang Yi in Beijing in August.

It is through engagements such as those that the UK can find ways to work together as well as discuss issues where we disagree strongly with China through direct and unambiguous dialogue. AI is a good example, and the UK will host the AI safety summit next month. Some have called for China to be excluded from this conversation, but it is clear that it will take global co-operation to tackle the challenges that come with that emerging technology, even if we do not share the same values.

Take global warming. As the world’s largest investor in sustainable energy and the largest emitter of carbon, the choices that China makes are critical to our collective ability to tackle climate change. To deliver our global climate goals, we must engage with China. For example, we are working with China and other financiers of international coal to accelerate momentum and ambition for the global transition through our COP 26 energy transition campaign. In other areas, such as global health and pandemic preparedness, decisions taken by China have the potential to have a profound impact on our lives at home.

The UK is an open economy. The Government welcome foreign trade and investment to support growth and jobs, including from China. We will not accept commercial activity that compromises our national security or values, and we have safeguards in place that enable us to engage with Chinese investors and businesses with confidence. The National Security and Investment Act came into force in January 2022 to allow the Government to intervene in acquisitions where we have national security concerns. We will not hesitate to use the Act’s powers if necessary. The Act’s annual report and final orders document the use of NSI powers to date, including to block eight acquisitions by Chinese companies. We also introduced a package of measures in May last year to update the UK’s export control regime. This enhanced our military end-use controls and added China to the list of destinations to which those controls apply. These changes strengthen our ability to prevent exports, and address threats to national security and human rights.

The complex challenges posed by China call for a carefully nuanced policy from government. The three-faceted approach that I have outlined—to protect our national security, align with our allies and partners, and engage with China where it is in the UK’s interests to do so—is, I believe, the right and responsible approach for the long-term peace and prosperity of our country. I commend it to the House and beg to move.