China and Japan

Lindsay Hoyle Excerpts

Monday 2nd February 2026 Commons Chamber

[Tom Tugendhat (Tonbridge) (Con)]

They went on their feet, not on their knees. [Laughter.]

[Mr Speaker]

Order! Mr Tugendhat, you will withdraw that remark.

[Tom Tugendhat]

I am sorry, Mr Speaker. I withdraw it.

[Mr Speaker]

Thank you. Can we calm it down? I am sure you will want to catch my eye and I would like to hear what you have to say, so let us not ruin the opportunity.

[The Prime Minister]

In this context, refusing to engage would be a dereliction of duty, leaving British interests on the sidelines. Incredibly, some in this House still advocate that approach. But leaders do not hide. Instead, we engage and we do so on our own terms, because, like our allies, we understand that engagement makes us stronger.

Protecting our national security is non-negotiable. We are clear-eyed about the threats coming from China in that regard, and we will never waver in our efforts to keep the British people safe. That is why we have given our security services the updated powers and tools they need to tackle foreign espionage activity wherever they find it, and to tackle malicious cyber-activity as well. The fact is that we can do two things at once: we can protect ourselves, while also finding ways to co-operate. It was in that spirit that we made this visit.

I had extensive discussions, over many hours, with President Xi, Premier Li and other senior leaders. The discussions were positive and constructive. We covered the full range of issues, from strategic stability to trade and investment, opening a direct channel of communication to deliver in the national interest, enabling us to raise frank concerns about activities that impact our national security at the most senior levels of the Chinese system. We agreed to intensify dialogue on cyber issues and agreed a new partnership on climate and nature, providing much-needed global leadership on this vital issue.

I raised a number of areas of difference that matter deeply to this country. I raised the case of Jimmy Lai and called for his release, making clear the strength of feeling in this House. Those discussions will continue. My right hon. Friend the Foreign Secretary is in touch with Mr Lai’s family to provide further briefing.

I raised our human rights concerns in Xinjiang and Tibet. We discussed Taiwan, wider regional stability, Iran and the middle east. I called on China to end economic support for Russia’s war effort, including the companies providing dual-use technologies, and urged it to use its influence on Putin to push for the much-needed ceasefire in Ukraine.

I also raised the fact that Members of this House have been sanctioned by the Chinese authorities. In response, the Chinese have now made it clear that all such restrictions on parliamentarians no longer apply. I want to be clear: this was not the result of a trade. Yes, Members will want to see more—I understand that—but that is precisely the point: ignoring China for eight years achieved nothing. This step is an early indication, not the sum total, of the kind of progress that this sort of engagement can achieve through leader-to-leader discussion of sensitive issues, in standing up for British interests.

My visit was also about creating new opportunities for British businesses to deliver jobs and growth for the British people. We took with us a brilliant delegation of nearly 60 businesses and cultural powerhouses—the very best of British—as an embodiment of what this country has to offer. If anyone is in doubt as to why this matters, I urge them to spend a few minutes with any one of those businesses; they will describe the incredible potential there and the importance of getting out there and accessing the market.

We made significant progress, paving the way to open the Chinese market for British exports, including in our world-leading services sector. We secured 30-day visa-free travel for all Brits, including business travellers. We secured China’s agreement to halve whisky tariffs from 10% to 5%, which is worth £250 million to the UK over the next five years—a significant win for our iconic whisky industry, particularly in Scotland. That lower tariff comes into force today. In total, we secured £2.3 billion in market access wins, including for financial services, £2.2 billion in export deals for British companies and hundreds of millions of pounds-worth of new investments.

In addition, we agreed to work together in some key areas of law enforcement. Last year, around 60% of all small boat engines used by smuggling gangs came from China, so we struck a border security pact to enable joint law enforcement action to disrupt that supply at source. We also agreed to scale up removals of those with no right to be in the UK and to work together to crack down on the supply of synthetic opioids.

We will continue to develop our work across all these areas, because this is the start of the process, not the end of it. My visit was not just about coming back with these agreements, but about the wider question of setting this relationship on a better path—one that allows us to deal with issues and seize opportunities in a way that the previous Government failed to do.

Finally, I will say a word about my meetings in Tokyo. Japan remains one of our closest allies; together, we are the leading economies in the comprehensive and progressive agreement for trans-Pacific partnership, and we are partners in the G7, the G20 and the coalition of the willing. Japan is the UK’s largest inward investor outside the United States and Europe.

I had an extremely productive meeting with the Prime Minister of Japan, where we set out our shared priorities to build an even deeper partnership in the years to come. Those include working together for peace and security, supporting Ukraine as we work for a just and lasting peace, and deepening our co-operation in cutting-edge defence production, including through the global combat air programme. We discussed how we can boost growth and economic resilience by developing our co-operation: first, in tech and innovation, where we are both leaders; secondly, in energy, where Japan is a major investor in the UK; and, thirdly, in trade, where we are working together to maintain the openness and stability that our businesses depend on. That includes expanding the CPTPP and deepening its co-operation with the EU. We will take all of that forward when I welcome the Prime Minister to Chequers later this year.

This is Britain back at the top table at last. We are facing outward, replacing incoherence and isolationism with pragmatic engagement, and naive posturing with the national interest. In dangerous times, we are using our full strength and reach on the world stage to deliver growth and security for the British people. I commend this statement to the House.

[Mr Speaker]

I call the Leader of the Opposition.

--- Later in debate ---

[Mr Speaker]

Order. Mr Kyle, you said to me when you were going to China how well you would behave and how you owe me a big thank you. You are not showing it today!

[Mrs Badenoch]

Mr Speaker, I am not worried about the Business Secretary; the entire business community thinks he is a joke and does not know what he is talking about.

As I was saying, of course we should engage with other countries, even hostile ones, but we need to do so with our eyes open and from a position of strength. That requires a Prime Minister and a Government who put our national interest first.

[The Prime Minister]

Let me see if I understand the right hon. Lady’s position. This is the Leader of the Opposition who said we should empty-chair the most important NATO summit for years, who would not turn up to the G7 and who would rip up our valuable trade deals with the US, India and the EU. This is the Leader of the Opposition who characterised Greenland as a “second-order issue”, and then undermined the Government’s position on sovereignty. When it comes to China, her policy is to stick her head in the sand, unable to influence anything. In a volatile world, that is not policy; that is an abdication of responsibility—no wonder members on her Front Bench are leaving in droves.

The Leader of the Opposition talks of the embassy. China has had an embassy in the UK since 1877. It is currently spread across seven sites. She is so busy trying to hold her party together that she has clearly not read the letter from the security and intelligence services. She claims great interest in the China embassy. She was offered an invite for a Privy Council briefing on the issue. What did she do? She chose not to attend. That is a dereliction of duty. Even worse, she sent in her place the shadow Home Secretary, the right hon. Member for Croydon South (Chris Philp)—that is a double dereliction of duty. Instead of taking up a Privy Council briefing, she took up a megaphone on the streets outside the embassy. I changed my party from a party of protest to a party of power. She is rapidly going in the opposite direction. Her reply this afternoon seems to be that we should engage with China, but not engage with China, and that, instead of leader-to-leader discussions where we raise all the opportunities and the difficult issues, each and every one of them, she would get a bag of sand and put her head in it and influence absolutely nothing. The Conservatives are so unserious about world affairs.

[Mr Speaker]

I call the Chair of the Foreign Affairs Committee.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I thank the Prime Minister for his statement, and I am pleased to see that his trip went so well. This morning, I was in touch with the Scotch Whisky Association, which wants me to convey its congratulations to the Prime Minister on securing reduced tariffs on exports to China. There is, of course, more work needed, however—a Prime Minister’s job is never done. The biggest overseas market for whisky is, of course, the US, where the tariff is still too high. Will the Prime Minister confirm that this will not be the end of his support for the Scotch whisky industry and that he will continue to be an advocate for it?

[The Prime Minister]

Yes, I can confirm that we are continuing to work with the US. Of course, the India deal we secured will also have an impact on whisky tariffs.

[Mr Speaker]

I call the leader of the Liberal Democrats.

[Ed Davey (Kingston and Surbiton) (LD)]

With your indulgence, Mr Speaker, I start by paying tribute to my friend Jim Wallace, one of the great Scottish Liberals. I offer our thoughts and prayers to his family and many friends. Jim devoted his life to public service, his Christian faith and the cause of liberalism. But his judgment was not always impeccable, for it was Jim who gave me my first job in politics. We will miss him.

I thank the Prime Minister for advance sight of the statement. I listened to the Conservative leader, whose position now seems to be to oppose trade with the world’s biggest economies—so much for global Britain. With President Trump threatening tariffs again, just because of the Prime Minister’s trip, and with Vladimir Putin still murdering civilians in Ukraine, now more than ever the United Kingdom must forge much closer alliances with nations that share our values, our belief in free trade and our commitment to mutual defence. China shares none of those.

The Prime Minister’s main focus should be on the closest possible ties with our European neighbours, our Commonwealth allies and our friends such as Japan and Korea. Once again, he has made the wrong choice. However, unlike the Conservative party, we think he was right to go and engage. But just like with President Trump, he approached President Xi from a position of weakness instead of a position of strength, promising him a super-embassy here in London in return for relatively meagre offers from China.

The Prime Minister rightly raised the case of Jimmy Lai, whose children fear for his health after five years held in captivity, so will he tell us what Xi said to give him confidence that Mr Lai is now more likely to be released? Did he also challenge Xi on the bounties on the heads of innocent Hongkongers here in the United Kingdom, or the revelation that China hacked the phones of No. 10 officials for years? In other words, did he stand up for Britain this time?

Yet again, the Prime Minister had to spend time on a foreign trip responding to revelations about the vile paedophile and sex trafficker Jeffrey Epstein’s relationship with Lord Mandelson. The Prime Minister has rightly said that Mandelson should resign from the other place, but since he has not, will he back a simple piece of legislation to strip him of his peerage? Surely this House could pass it tomorrow.

[The Prime Minister]

I start by offering my deep condolences on behalf of the Government in relation to Lord Wallace. He was a kind and decent man, and I know he will be sorely missed on the Liberal Democrat Benches. May he rest in peace.

Of course we need to build stronger alliances with our key partners, and that is what we have been doing, particularly with the EU. But the right hon. Gentleman is wrong: it is not a choice between doing that and engaging with China. One can do both, and that is what we are doing. Where there are opportunities, and where there are sensitive and really important disagreements, I think it is more important to have a meeting to discuss them.

The House is violently agreeing that there are issues that need to be discussed. The difference between us is that we think that having a leader-to-leader meeting to discuss those big issues is better than sticking our head in the sand, if we really want to influence them. So we can do both.

Yes, I raised the case of Jimmy Lai, and we have now spoken to his family about that discussion. Yes, I raised the case of Hong Kong. I raised a number of human rights issues, as I listed. The point is that, by being in the room and having the debate one to one, at leader-to-leader level, it was possible to raise those issues. There is frankly no point standing in this House shouting and screaming about issues if you are not prepared to get in the room to discuss them. It gets you absolutely nowhere.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I want to welcome the Prime Minister’s serious engagement with serious power: it is essential to safeguarding our national interest. The complexities of China require from Britain a whole-of-society approach, which is completely impossible until the Government publish a clear China strategy to explain what is off limits and how we are going to rebalance competition with Chinese industry that is six times over-subsidised compared with our firms. Last week in Europe, I heard very clearly from our partners that they are worried that the lackadaisical approach to policing Chinese competition risks deeper integration with Europe. The EU has 143 trade measures in place against China; we have none. So will the Prime Minister now follow up his meetings last week and publish a strategy, co-ordinated with our allies, so we can take out the guesswork and put in place the guardrails for this important relationship?

[The Prime Minister]

Obviously, the general approach was set out in the Lady Mayor’s banquet speech I gave just before Christmas. My right hon. Friend made a really important point about Europe. As I mentioned, President Macron went to China just a few weeks ago and Chancellor Merz is due to go very shortly, and my right hon. Friend will not be surprised to learn that the three of us, as the E3, discussed in advance the approach we would take and agreed to discuss during our visits and afterwards the outcomes and how we go forward as a group of European nations.

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

What absolutely unites everybody in this place is absolute outrage at the treatment of Jimmy Lai, a British citizen whose only crime is to campaign for democracy and to ask the Chinese to obey the spirit and letter of the solemn agreement that we made with them before the 1997 takeover. The Prime Minister said at the weekend that he had raised the case of Jimmy Lai “respectfully” with the latest Chinese emperor —“respectfully”? Does the Prime Minister not realise that the Chinese only accept strength—that everything is a deal—so why did he not say to them, “There will be no Chinese embassy until you stop spying on us in this House, you give an absolute assurance to us on Diego Garcia, and, above all, you free Jimmy Lai now”?

[The Prime Minister]

I raised the case of Jimmy Lai in terms with the President, as in fact I did, as the right hon. Gentleman knows, at the G20 when I met the President for the first time, and we have updated the family in relation to the progress we have made. But the position of the Conservative party seems to be that we should raise the case of Jimmy Lai by not going to China and raising the case of Jimmy Lai.

[Mr Speaker]

I call the Chair of the Defence Committee.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

We must engage pragmatically with our allies and with others around the world when it serves the national interest. That is why I welcome the Prime Minister’s engagement with our close ally, Japan, as well as with our major trading partner, China. I also welcome his commitment to the global combat air programme, which, as the Defence Committee illustrated, is of vital strategic importance as we develop the next generation of fighter jets. But our Japanese and Italian friends are understandably nervous, because we have as yet not put pen to paper on the full contract for Tempest, as was planned last year. Can the Prime Minister clarify when that fully formalised contract on GCAP will be penned, and can he also confirm that the timeline and programme will slide sideways?

--- Later in debate ---

[Stephen Flynn (Aberdeen South) (SNP)]

As you will be aware, Mr Speaker, when the Prime Minister was in China and Japan, he gave comment that Andrew Mountbatten-Windsor should testify before Congress in the United States. What the Prime Minister chose not to do was to offer an unreserved apology to the victims of Jeffrey Epstein for appointing his other friend, Peter Mandelson, as the ambassador to the United States of America. Now that he is back from China and Japan, will the Prime Minister take the opportunity to do just that, and does he agree with me that Peter Mandelson should be subject to a police investigation for potential criminality while in public office?

[Mr Speaker]

There is a statement to come.

[The Prime Minister]

Only the SNP could go about this in this way—instead of welcoming the halving of tariffs on Scottish whisky, the right hon. Gentleman raises things that have absolutely nothing to do with China or Japan. Only the SNP has no interest at all in delivering for Scotland.