UK-China Relations

I beg to move,

That this House has considered UK-China relations.

It is a pleasure to serve under your chairmanship, Ms Lewell. I welcome the opportunity to raise in this House the opportunities and implications of our relationship with China. I declare an interest as a member of the Inter-Parliamentary Alliance on China, alongside other colleagues in attendance today, who have consistently raised concerns over the UK’s relationship with China.

Since Brexit, the UK has rightly sought to establish new economic and trade relationships beyond Europe, aiming to diversify access to key commodities. As a result, China has become the UK’s third largest trading partner. This economic interdependence presents both an opportunity and a risk, which we must navigate carefully to uphold security, human rights and our fundamental values. Yet we have already seen how economic leverage can be misused. The UK-China economic and financial dialogue in January resulted in a rather uninspiring £600 million deal—hardly the sign of a robust, or indeed equitable, economic relationship. This is not a partnership; it is dependency, and dependency makes us vulnerable.

Take the UK’s reliance on China for renewable energy components, for example. My right hon. Friend the Leader of the Opposition made it clear in her policy renewal speech last Tuesday that the best way to deliver clear energy and a better environment is with the markets. However, the reality is that much of our push for net zero is built on Chinese supply chains, particularly in solar panels, wind farms and electric vehicles. A long-term net zero strategy cannot mean long-term reliance on China.

If the mechanisms and safeguards were robust enough to ensure that there is not slave labour in supply chains, would that address the hon. Member’s concern?

I will come on to slave labour almost immediately, but to answer the hon. Member directly, I think the security concerns are too great. I welcome safeguards to remove slave labour, but there are still concerns beyond that that we should be looking at.

Of course, that is a wish, not a reality. We have no way of ascertaining whether suppliers are buying from slave labour, and there is no punishment available should they be doing so. The situation is quite the opposite in the United States, which sanctions companies that have been using slave labour. That has made a big difference. The Government have to get their head around this, otherwise we are just going to get slave labour-made products all over.

My right hon. Friend, who has considerable and lengthy experience of dealing with China, makes a crucial point. There is no point in having a wish list if there is no sanction or enforcement to back it up.

Trade with China is tainted by human rights abuses. I will give an example. Over 1 million Uyghur Muslims are imprisoned in a vast network of forced labour camps in Xinjiang; it is the largest mass arbitrary detention since the second world war. Despite China’s denials, we know that UK industries, from textiles to electronics, remain dependent on materials from that region. Xinjiang produces between 20% and 25% of the world’s cotton and polysilicon, which is a critical component in solar panels. That is why Lord Alton’s amendment 18 to the Great British Energy Bill, which secured cross-party support, was so significant in ensuring that our supply chains align with human rights standards.

On 25 March 1807, the Abolition of the Slave Trade Act received Royal Assent, yet 218 years later, Labour MPs blocked a ban on buying solar panels from China.

My hon. Friend is making a very good speech, but this is not just about human rights abuses. There is a reason that China uses slave labour—and it came from nowhere 10 or 12 years ago to now be the dominant player in the business. It is because it does not pay salaries, which makes the arrays cheaper. British companies go rushing over to get them because they are cheaper, and the Government do not mind too much because they do not have to pay so much. The key is that it has to be proper and functional.

I entirely agree with my right hon. Friend. I will make similar remarks later in my speech, but that is key. Not only is it the use of slave labour, which should be enough to get the Government to start thinking seriously, but it is a complete undercutting of our market.

The hon. Gentleman is being generous with his time. The right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) almost took the words out of my mouth. Is it not critical to exclude slave labour from the supply chain for solar panels, in particular, not only on moral grounds, but in order to enable alternative producers in Europe, South America and North America to compete on a fair playing field?

The hon. Member is entirely right. I would be very surprised if anyone in the Chamber did not agree with him. The key point is how we move from what I think is relatively universal agreement to actual sanctions and enforcement, to make sure that our manufacturers are competing on a level playing field.

As an example of that, a 2023 report from the Helena Kennedy Centre for International Justice at Sheffield Hallam University noted that in 2020, China produced 75% of the global supply of solar grade polysilicon, and 45% of that was manufactured in Xinjiang. That is why the amendment that I alluded to earlier was crucial to cleaning up the supply chains and preventing the UK from becoming core to Chinese consumption.

Will the hon. Member give way?

I will in a minute; I just want to make a bit of progress.

On Times Radio, the Housing Minister gave his “absolute” guarantee that solar panels for GB Energy projects on hospitals and schools will not include slave labour. But without legal requirements for companies to comply, will the Minister outline how she can be sure that such labour will not be involved?

China’s dominance in trade also extends to industrial production. The Intelligence and Security Committee report in July 2023 warned that the Chinese Communist party had penetrated “every sector” of the UK economy, leaving us with a £32 billion trade deficit. The consequences of this economic entanglement are already apparent. When a recent shipment from Xinjiang entered UK airports via European Cargo, neither Border Force nor the responsible Government Departments took the necessary steps to intervene. The failure to act leaves our economy exposed and less competitive.

Meanwhile, China remains the world’s largest carbon emitter: it emits 15 billion tonnes of CO₂ annually and powers industries with coal while exporting steel and electric vehicles at artificially low prices. What is the UK doing? I urge the Minister to clarify whether the Government are considering measures similar to those that, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) pointed out, the US is taking.

Does the hon. Member not agree that the correct characterisation of the amendment to the Great British Energy Bill that he mentioned is that it was about restricting how the Government spend money on GB Energy? If it had been about a whole of industry approach, and stopping both private companies and the Government purchasing solar panels tainted by slave labour, that might have made sense.

I fear that the hon. Member is dancing on the head of a pin there. To be frank, I do not agree with him on that. I think the Government should be really clear about what they are actually going to do to—

Will my hon. Friend give way?

Yes, but then I will make some progress.

I need to deal with this point through my hon. Friend. The reality is that the Government already accept something on which I worked with them when they were in opposition, which is to get to exactly the same position as in the Health and Care Act 2022. The NHS is not allowed to buy anything made by slave labour—it encompasses everything. The amendment to the Great British Energy Bill would have done the same. To those who say, “It’s too narrow because it’s only one sector of the economy,” I say that we have already done it with health and care, and Labour voted for that at the time. I was rather proud of that.

My right hon. Friend should be very proud of that and everything that he has done to stand up to Chinese aggression, on trade and on a number of the other issues that we will touch on during the debate.

Let me move on to the security and rule of law elements that I have concerns about. Economic interdependence is only one dimension of our vulnerability. The UK must also confront China’s growing efforts to exert influence and repress dissidents on British soil. The proposed Chinese mega-embassy at Royal Mint Court epitomises that threat. Despite being firmly opposed by the previous Conservative Government, it is now likely to proceed, apparently due to lobbying by the Home Secretary, the Foreign Secretary and even the Prime Minister. Housing 700 diplomatic staff, the complex could become a hub for transnational repression and espionage, putting at risk Hongkongers, Tibetans, Uyghurs and Taiwanese individuals who have sought refuge in the UK. The brutal 2022 assault on Hong Kong protester Bob Chan in Manchester, perpetrated by Chinese diplomats who escaped justice under diplomatic immunity, should serve as a stark warning to us all.

Beyond our borders, China continues its assault on democracy and human rights. Some 2,000 political prisoners remain in arbitrary detention under Hong Kong’s draconian national security law. One such prisoner, with whom I am sure we are all familiar—Jimmy Lai, a British citizen—has spent more than 1,500 days in solitary confinement without access to British consular support. The Government’s failure to assist him speaks of a broader pattern of weakness in standing up to the Chinese regime.

I therefore support the Bill promoted by the hon. Member for East Renfrewshire (Blair McDougall), which would legally enforce stronger consular protections for British journalists detained abroad. I hope that the Government will start to support it as well.

Does the hon. Gentleman agree that the scale of fear in the Hong Kong community in this country is extremely concerning? Every aggressive act by the Chinese state, whether sanctions, violence against protesters or bounties, only increases the fear of the long arm of the Chinese state and of transnational repression, including among the Hong Kong diaspora I am fortunate to represent.