The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)
My Lords, I am grateful to my noble friend Lord Moynihan for calling this debate and to the noble Lord, Lord Triesman, and other noble Lords for their valuable contributions to it. I am grateful also for the context and detail provided by my noble friend Lady Falkner and the noble Lord, Lord Wilson. I will not try not to repeat too much of the history and background that noble Lords have already heard.
The Asia Pacific region is home to the world’s second and third largest economies—China and Japan. In 2012, together they accounted for 20% of global GDP and their economies are heavily dependent on each other, with around 20% of Japan’s imports coming from China, while Japan is China’s biggest source of foreign investment. As my noble friend Lord Moynihan rightly pointed out, there are numerous opportunities for the UK in the region. The UK is therefore committed to supporting the continued economic growth of the region and promoting the regional security and stability which underlie that. This was illustrated by my right honourable friend the Prime Minister leading the largest ever delegation to China last month, which followed a similar trade visit to Japan in 2012 and the enormously successful state visit of their Imperial Majesties the Emperor and Empress of Japan for Her Majesty the Queen’s Jubilee celebrations in the same year.
The noble Lord, Lord Wilson, asked about the current state of the bilateral relationship with China. During the Prime Minister’s recent visit to China, Premier Li described the UK’s relationship with China as,
“one that is indispensable for both of us”.
We are committed to deepening our co-operation with China in the interests of shared prosperity and security and developing our understanding of each other’s values. The UK wants China to prosper because that is good for Britain, and we have much to offer the Chinese as well. There are many things that we can and need to do together as countries of global influence and as permanent members of the UN Security Council, from negotiations with Iran to counterterrorism and climate change. However, I will certainly take back the comments and suggestions of noble Lords, along with those of my noble friend Lady Falkner and the noble Lord, Lord Triesman, on the various ways in which the relationship could be broadened through the use of more soft power. I can inform my noble friend Lord Teverson that during his visit the Prime Minister raised concerns about the issue of ADIZs and underlined our wish for a reduction in regional tensions and for improved communications between the parties. He also underlined the UK’s support for the recent EU statement.
We want China to succeed economically in an interconnected and global market. The repercussions of any nation failing would be damaging to us here in the UK. We see plenty of opportunities for co-operation. As China grows and develops, it will pursue its interests more actively. That is natural and we will encourage China’s emergence as a responsible regional and global player. It is to be expected that China will develop its military capabilities. We welcome Chinese maritime activities such as its involvement with counterpiracy in the Horn of Africa and its growing role in international peacekeeping. We encourage similar activities across the board. We are concerned about aspects of China’s military development, most notably the lack of transparency, but we believe that we can best encourage change and enhance mutual understanding through engagement.
We acknowledge that others in the region have concerns about an increasingly self-confident China which they see as using its vast economic power and other forms of leverage to gain the upper hand in territorial disputes. We have seen this recently by the regional reaction to China’s establishment in November of the air defence identification zone over the East China Sea, the subject of today’s debate. I shall comment now on that specific issue. My noble friend Lord Moynihan asked about the UK’s view on the ADIZ. While the UK does not take a position on underlying sovereignty issues, we have a clear interest in maintaining the freedom of navigation and overflight. The legitimate use of airspace is essential for security, stability and prosperity. Actions that bring, or appear to bring, these rights into question are not conducive to finding lasting solutions to the differences that exist in east Asia. The UK therefore fully supports the EU statement, which notes with concern China’s establishment of an East China Sea air defence identification zone. It heightens tension in the region and raises the risk of escalation. We have encouraged and will continue to encourage China and its neighbours to pursue through diplomatic means regional policies that ensure stability, diffuse tensions and resolve the dispute constructively without putting the freedom of navigation or commerce at risk. It is in no one’s interest that tensions escalate to a point of conflict and it is why it is for all countries in the region to take measures to avoid this conflict.
My noble friend Lord Teverson asked about the role for Europe in Asia. I fully agree that there is a role for Europe in Asia and the UK is working with other EU members to explore where the EU can make a difference, drawing on Europe’s experience and expertise on maritime issues and those relating to disaster relief. The EU hosted a seminar on maritime security with ASEAN in Jakarta last year. We recognise that other countries in the Asia-Pacific region are concerned that we may see further examples of assertive Chinese behaviour and we therefore urge all parties to work together to reduce tensions and to try to resolve these issues peacefully.
During his visit to China, the Prime Minister underlined our wish for improved communication for constructive engagement and for diffusing tension. I would urge, as I am sure noble Lords on all sides of the House would, that both China and Japan establish mechanisms to promote understanding and co-operation and to manage incidents. I take on board what we have heard today regarding how they need to move forward and go beyond a point where even ambassadors are not prepared to sit and discuss issues, as we saw on “Newsnight”.
We recognise that other countries have concerns that China might extend its ADIZ further, including into the South China Sea and Yellow Sea, resulting in heightened regional tensions. The South China Sea is of global importance, being a vital trade artery through which up to half of world trade passes. A crisis there would negatively impact on world trade and have a direct impact on UK prosperity and security interests. While we do not take a position on the underlying sovereignty disputes, we of course have a clear interest in maintaining freedom of navigation in that area. We have therefore encouraged all parties to try to resolve these matters in line with international law, including the United Nations Convention on the Law of the Sea, and have encouraged efforts to make progress on the ASEAN-China Code of Conduct. We have offered our assistance in promoting confidence-building measures and in sharing maritime experience.
We regularly discuss foreign policy issues with the US—that point was raised by a number of noble Lords—and our discussions on areas of interest in Asia Pacific have included China’s ADIZ. We welcome the US rebalancing in the Asia Pacific region, which is in line with our own renewed engagement. In meetings between Assistant Secretary Russel, the Foreign Office and No. 10 earlier this week, views were exchanged on a wide range of Asia Pacific security issues, including the current tensions in North East Asia.
The Government are working increasingly closely with the US and other allies in the region in areas where we have common aims, such as cybersecurity, the South China Sea, North Korea, Burma and encouraging China to commit to rules on transparency and good governance. Our historical ties, including through the Commonwealth, membership of the five power defence arrangements, a garrison in Brunei, our membership of the EU and our strong trade and investment links, make us a very relevant player in the region in our own right and we continue to invest time and resources into building these relations.
We will continue to pursue an all-Asian policy, engaging constructively and strengthening relations with nations across the region. We urge all parties to strive to resolve issues peacefully so that all countries can benefit from the region’s continued prosperity and growth. We will continue to work tirelessly to ensure that the UK remains a key partner for the region. I once again thank my noble friend for calling this debate and shedding light on what is an incredibly important issue.