Electric Vehicles: Chinese Share of Market

11. What steps his Department is taking with Cabinet colleagues to mitigate the potential risks posed by the Chinese share of the electric vehicle market.

China’s role in the automotive industry is growing, and that invites risks and opportunities. We are working closely with other Government Departments, as the hon. Gentleman would expect, to analyse how this impacts the UK. Where we need to act, we will do so, and any action taken on Chinese electric vehicles has to be the right one, including for our UK industry.

I thank the Minister for her response, but could she outline the Department’s wider strategy on challenging China’s global monopoly on critical minerals, including lithium, much of which is extracted by forced labour?

I thank the hon. Gentleman for his supplementary question. As I said, we are working closely with our colleagues across Government to make sure we have the right intelligence and can make the right decisions where we need to act. He will be aware that other countries are introducing tariffs and taking a range of measures. Our sectors are very different from those of other countries—we are not the same as the US or the EU—and we need to respond in the right way when it comes to electric vehicles. For example, 80% of the vehicles we manufacture in the UK are exported, so our challenges are different.

However, the hon. Gentleman is right to raise these important issues, including the need to look at critical minerals and supply chains, and at how we can ensure we are getting as many parts as possible from countries with which we want to have a different relationship. That is why we have set up things such as the solar taskforce to ensure that when it comes to solar panels, for example, we are using the supply chains as best we can to make sure there is not a global monopoly and that we are economically secure as a country.

I call the shadow Minister.

What we have this morning is another chapter in the growing theme of what the Government said before the election and what they are doing after the election being entirely different things. The Chancellor of the Exchequer talked in May about reliance on Chinese EVs undercutting British workers and leaving us exposed, but by July she was talking about the benefits of trade with China. What we have seen in this Chamber this morning is that, while the rest of the world—the United States, Canada, the European Union—is acting on Chinese dominance in the EV market, the United Kingdom Government continue to dither. What is it to be: clear action on behalf of the UK automotive sector, or continued dither and failing to make a decision?

I do not know whether the hon. Gentleman is aware that until recently his party was in government, and inward investment from China grew over four times since 2014, so I will take no lessons from him on these issues. The automotive industry, which I work with closely and meet regularly, has not asked for what he suggested—

It will do.

No, it has not. The hon. Gentleman is chuntering again from a sedentary position. It has not asked for that. This is something we are monitoring. We will work closely with the industry and do the right thing, and if we need to intervene we will intervene. As I said, the UK’s economy and industry differ very much from those of other countries, and 80% of UK auto production is exported. It is not that we have the risk of EVs in the other direction. The hon. Member for Mid Buckinghamshire (Greg Smith) needs to recognise the part that his Government played in the development of these matters over many years, and be reassured that we are working closely with our colleagues to make sure we do the right thing.