China: Supply Chains

Debate between Lord Grimstone of Boscobel and Lord Blencathra

Wednesday 1st July 2020 Lords Chamber

[Lord Blencathra]

To ask Her Majesty’s Government what assessment they have made of the report by the Henry Jackson Society Breaking the China Supply Chain: How the ‘Five Eyes’ can Decouple from Strategic Dependency, published on 14 May; what plans they have to conduct an assessment with industry based in the United Kingdom of the supply of goods sourced from China; and what steps they are taking to encourage such goods to be sourced from the United Kingdom.

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

My Lords, coronavirus has highlighted the importance of access to critical goods. Having a diverse and reliable pool of suppliers is clearly in our interest, whether from a security, sustainability or value-for-money perspective. The Henry Jackson Society report makes a useful contribution as we consider resilience in our supply chains. We are supporting businesses to diversify supply chains by opening new markets through free trade agreements, reducing barriers to exports and maintaining a competitive business environment.

[Lord Blencathra (Con) [V]]

I give a very warm welcome to my noble friend the Minister on his first appearance at the real Dispatch Box. Recent events have shown the extreme danger of depending on vital supplies from foreign powers, even close allies. Since the Chinese Communist regime is now behaving like a hostile state, threatening Taiwan, commandeering islands in the South China Sea, covering up its Wuhan virus failures and terrorising Hong Kong, will my noble friend now step up work with UK companies to urgently reshore those vital 229 strategic goods and services that we currently get from China?

[Lord Grimstone of Boscobel]

The noble Lord makes some strong points. My department is considering import dependency and will continue to analyse imports, including from China, to determine whether the UK is particularly reliant on certain of our trading relationships. Project Defend is looking at our trading relationships with a range of international partners. It will analyse critical supply chains for a range of non-food items in addition to medical supplies. We will continue working to keep trade flowing by reducing tariff and non-tariff barriers and through our programme of FTAs.