House of Commons committee criticizes Britain’s strategy toward China — The Guardian
The UK House of Commons Business, Innovation, Science and Trade Committee said that the government has not developed a coherent strategy in its relations with China. In the report, MPs warned that without an independent course, London risks falling under the influence of decisions made in Washington or Beijing. This was reported by The Guardian.
The committee’s chair, Labour MP Liam Byrne, said that the government’s inconsistent approach prevents British businesses from planning their operations and creates risks for trade with the European Union. The committee concluded that the authorities have failed both to secure commercial opportunities for British companies and to control the growth of uncalculated risks in relations with China.
Investment and trade protection
MPs proposed establishing new rules for economic relations with China. In particular, the report recommends defining a “red zone” of industries closed to Chinese investment, as well as a “green zone” of sectors where trade should be encouraged.
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The committee also called for preparing trade instruments to counter unfair competition, including potential tariffs on Chinese electric vehicles. Downing Street did not rule out such a step. Business Secretary Jonathan Reynolds previously said that decisions would be made in line with the country’s interests.
Risk of drifting away from the EU
The report mentions the decision in March to block the construction of a £1.5 billion wind power plant in Scotland, planned by the Chinese company Ming Yang. After years of negotiations, the project was halted over unspecified security risks. The committee also described the emergency takeover of British Steel, which was owned by Chinese owners, as an example of a reactive and opaque approach.
MPs stressed that the EU has already imposed tariffs on Chinese electric vehicles, limited the number of hybrid cars that can be imported from China, and is considering a mechanism to block supplies if Beijing uses trade as a tool of pressure. In Byrne’s view, the UK should be prepared to consider dynamic alignment with the EU’s approach, including on electric vehicle tariffs, so that British companies do not lose access to European manufacturing contracts.
