China: Supply Chains

Debate between Lord Grimstone of Boscobel and Earl of Erroll

Wednesday 1st July 2020 Lords Chamber

[Lord Grimstone of Boscobel]

At the moment, we are consulting on various areas where it might be possible to launch a free trade zone, but I am not aware that Five Eyes membership will be a qualification for that. UK engagement with the belt and road initiative is focused on practical steps and collaboration to help ensure that infrastructure investments are delivered in line with recognised standards in four key areas: transparency; environmental impact, including carbon emissions; social standards; and debt sustainability. Such standards lead to good projects, which benefit all parties. With their world-leading experience, British companies have an important role to play in contributing to that effort.

[The Earl of Erroll (CB) [V]]

Does the Minister agree that not much electronic equipment is manufactured in the UK so we will always be strategically dependent on foreign companies? Is not the important thing to ensure interoperability and spread the risk across suppliers in different countries, and to realise that we cannot rely on any country when it comes to security and spying? What we need is end-to-end encryption that works. Should we not also support UK companies to build equipment in the new, innovative 5G space?

[Lord Grimstone of Boscobel]

It is certainly a great priority for us to do that. It falls into the general area where it is very important to secure diversity of supplies for the United Kingdom. The pandemic has taught us many lessons about the importance of diversity of supplies. The noble Earl can rest assured that we are observing and watching this very carefully, including developing with our allies alternative sources of supplies to give us much greater diversity in these matters.