AUKUS: Impact on Anglo-Chinese Relations

Geoffrey Clifton-Brown Excerpts

Wednesday 20th October 2021 Westminster Hall

[Daniel Kawczynski]

Well, I am a politician, Mr Davies. You have to give me some leeway to give you a brief synopsis up front. Thank you for your patient indulgence.

With regard to AUKUS, we need to celebrate. I am having this debate because I want to send a copy of it to all of my members in Shrewsbury. I rang my association chairman—we have about 500 members in the Shrewsbury Conservative Association—and I have asked for a copy to be sent to all of my members because I think we ought to celebrate the signing of AUKUS. It is extraordinary how little coverage it has received in the press and that the United Kingdom is the only European country that has been asked to join this extraordinary military-naval pact with America and the United States of America.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Australia.

[Daniel Kawczynski]

Forgive me—Australia. I would describe AUKUS as historical allies joining forces again, reinforcing their military bonds, tempered over the heat of many conflicts. The USA, UK and Australia have come together to confront emerging threats. The three of us had to intervene during the second world war to prevent the Japanese empire causing chaos and instability in the region. Now again, I am afraid, those three countries have to come together, in advance of seeing the threat of the Chinese hurtling towards us and other important countries.

Although China was not named in the joint statement, the implication was clear in the opening paragraph:

“we resolve to deepen diplomatic, security and defense cooperation in the Indo-Pacific region”.

Artificial intelligence, quantum technology, cyber-warfare, long-range strike capabilities and a nuclear component are primary areas covered by the pact. It may be noted that in all those areas there is direct competition between China and the United States of America for supremacy.

One person who knew how to deal with the Chinese was the great Singapore statesman, Lee Kuan Yew. Many people told me ahead of this debate to listen again to that great man and how he managed to protect his tiny microstate of Singapore, despite all adversity and threats. I have been watching some of Lee Kuan Yew’s speeches, both in Singapore and in London during his many visits to our capital city. I would like to share with colleagues one thing he said that particularly struck me. He decried the British leaving Singapore in 1971. We had military bases there and he foresaw the dangers ahead of the British leaving.

Hon. Friends and colleagues will know that in 1971 we were going through a period of economic malaise and—how shall I put it?—a lack of self-belief and political courage, and introspection. That is why, under Ted Heath and Mr Wilson, we made those catastrophic mistakes of short-termism, yet again. Remember that the Chinese have a 1000-year strategy. Here there was short-termism, a lack of self-belief and a lack of understanding and appreciation of our reputation in the region from key allies. That led us to leave Singapore in 1971. I hope AUKUS is the prelude to a wider security pact with more countries, and potentially more negotiated British naval bases in countries in the region.

Let us take a moment to recognise and appreciate the extraordinary privilege and prestige that we have as the only European nation with a permanent naval base in the Arabian sea. The Minister will be very cognisant of that. That naval base in Bahrain plays a critical role in maintaining peace between Iran and Saudi Arabia, the two protagonists in that region. Can you imagine, Mr Davies, what would happen in the Arabian gulf if the British did not have a presence in Bahrain? I hope that what we are doing in the Arabian gulf will be replicated in the Indo-Pacific region. AUKUS is the embryo—the prelude—to that.

Mr Davies, you will be pleased to know that I am coming towards the conclusion of my statement. I will refer briefly to the CPTPP. I campaigned for Brexit and I am very proud that my constituency of Shrewsbury voted for Brexit. Now that we have left the European Union, an organisation that is shrinking every day as a percentage of global population and output, we have the opportunity to join the CPTPP, a $9 trillion market in exactly the same region in which AUKUS will operate. It is an economic partnership of 14 countries that, combined, are much larger than the European Union and growing, rather than shrinking, like the European Union.

Let me read out the statement I prepared earlier about why we must now marry our military responsibilities in AUKUS with our forthcoming membership of the CPTPP, and how there must be a unique synergy in tying these two projects together. We can send countries all the arms and armaments we like, but it will mean nothing if China strangle them economically. No one can fly a war plane if they cannot afford the fuel to feed it. China is fighting an economic battle that requires an economic response.

As mentioned, we have ready allies in the region who are more than willing and able to provide support in countering the Chinese. Vietnam and Indonesia, in particular, have the capability to meet our economic needs and those of our allies, in the same way that China can. There are few, if any, restrictions on what countries such as Vietnam can do, relative to what China can do.

I do not know about hon. Members here, but I have very important, large institutions in Shrewsbury—I will not embarrass them now—both in the public and private sectors, who have approached me to say, “We are worried and concerned about our over-dependence on Chinese investment. They are pouring resources into our institutions and are slowly, but inextricably, trying to take control of them. What do we do, Mr Kawczynski?”

The answer to this is the CPTPP. I say to my constituents, “If you need investment from Asia or the far east, please be aware that we applied to join the CPTPP on 1 February 2021 and that negotiations started on 1 June. When we finally agree to be the first ever European country to join the CPTPP, then that free trade scenario will afford us and be the catalyst for a potential massive recalibration of the investments that we accept in this country, and in the exports and imports that we have with China versus the other 14 countries, in particular countries such as Vietnam.”

I would like to ask the Minister, what can the Chinese provide us with that the Vietnamese cannot? I would rather give my money to the Vietnamese, the Singaporeans, the Malaysians, the Indonesians, the Indians, the Japanese and the Australians. All these countries are friendly nations who have nothing but good intentions towards the United Kingdom. What is the purpose of continuing to pour money into China, with this massive dependency on imports from that country?

Finally, Mr Davies, may I make one important last point about Diego Garcia, the British Indian Ocean Territory? In 2018, the Foreign Office asked me to visit the British Indian Ocean Territory, a chain of approximately 30 or 40 islands in the middle of the Indian ocean. What I saw there was absolutely breathtaking and mind-boggling. I have never seen such vast naval and air force installations in my life. This is a critical base that has already been used for wars in the middle east, for supplies, logistics and all the rest of it. We have just entered into an AUKUS military alliance with America and Australia, and yet Mauritius is trying to take these islands from us through the United Nations.

I want hon. Members to know, and this is one of the reasons I keep tabling written parliamentary questions on this issue, that when we gave Mauritius her independence in 1965, it was made abundantly clear—I have read the treaty documents many times—Mauritius would have her independence but would not have control over the British Indian Ocean Territory, which is literally hundreds and hundreds of miles away from it. Hon. Members will know that the British Indian Ocean Territory is actually much closer to the Maldives than it is to Mauritius, yet Mauritius is taking us through every conceivable route at the United Nations to steal—I use that word deliberately—these islands from us. I will also use parliamentary privilege to say that I would not be surprised if the French were not using their influence with the Mauritius Government to facilitate this action, because who do we think would have a naval base in the British Indian Ocean Territory if it was not controlled by Britain but taken over by Mauritius?

[Sir Geoffrey Clifton-Brown]

May I congratulate my hon. Friend on an outstanding speech? Indeed, it is one of the most outstanding speeches that I have heard in this Chamber in my time in Parliament. I will just inform my hon. Friend and the House that when I was a shadow Foreign Office Minister I studied the issue of the Diego Garcian people. When we gave Mauritius independence, they were fully compensated—the families were fully compensated. The wise ones invested and now have houses; the unwise ones spent all the money. There was then a further round of compensation, because it was deemed that they had not been given enough, so they have been fully compensated for any familial ties that they might have had to Diego Garcia.

[Daniel Kawczynski]

I thank my hon. Friend for that intervention. Not surprisingly, I completely concur with everything he has just stated. I would also say to him that in addition to the treaty—the Minister will know about this—we gave Mauritius £4 million as final settlement. Hon. Members will remember how much £4 million was in 1965. Mauritius took that money. Now, 50 years on, Mauritius is trying to overturn—

--- Later in debate ---

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Thank you, Mr Davies, for allowing me to take part in this debate. I would like to thank the Minister; she and I have not always agreed on everything, but we have moved on, and I am glad to see her here. I give sincere congratulations to my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski); his was one of the highest-quality speeches that I have heard in this Chamber. This is an incredibly important debate, and I am sorry that it is so thinly attended.

You have given me about six minutes, Mr Davies, so I will motor on, but I want to make one or two important points that were not in my speech, but that arise from what my hon. Friend the Member for Shrewsbury and Atcham said. Perhaps the most important thing he said was that now that we have freed ourselves from the straitjacket of European Union trading arrangements, we need to participate fully in the Indo-Pacific tilt and its trading arrangements. He is quite right that it is one of the fastest-growing regions in the world. It is certainly growing much faster than the European Union, which is, if anything, retrenching in terms of percentage of world GDP; he is 100% right on that. I hope we succeed in our CPTPP negotiations. He is also 100% right to talk about naval bases. Ironically, that is exactly what the Chinese are doing; they are expanding their naval bases those in Sri Lanka and Djibouti being just two examples. China is doing exactly what he urges us to do. At Diego Garcia and Guam there are two very significant American bases, which will be maintained at full strength.

My hon. Friend is also right to say that we should reduce our dependency on Chinese investment in this country. Unprecedentedly in my 29-year parliamentary career, I have called for an urgent question. It is on the Chinese purchase of Newport Wafer Fab. It makes our highly sophisticated microchips, which are extremely difficult to make; we have some of the world’s best technology, and we are selling it to the Chinese. These microchips are the basis of every piece of electronic equipment. It was crazy to allow this, and I still appeal to the Minister to look at this again, because it was not very sensible.

I have been actively engaged with members of the Chinese Government at the most senior levels for the last 20 years or so. I am also deputy chairman of the all-party parliamentary China group, so I can claim to have some insight into the Chinese psychology. What one really needs to look into is: what is the psychology driving China when it takes an action? How will it react to this trilateral security pact? Since 2010, the relationship between the UK and China has been pragmatic and often mutually beneficial. For example, the UK was the first western nation to join the Asian Infrastructure Investment Bank. It is still one of the largest foreign countries trading renminbi. I think we have to be pragmatic. I do not think we should cut off our trade with China; I just think we should diversify it.

I totally agree with Members who have mentioned the serious human rights violations in China, which we in the UK abhor and rightly express our concerns about directly with China. That does not mean that we should not be friends with the Chinese on a people-to-people level; nor should it prevent our Governments from having responsible dialogue. China is too big and strategically important not to engage with. The message I want to leave this House with is that if we stop engaging with China, we stop having any influence with it. It is absolutely essential to engage, and we have done throughout history. We have engaged with people whom we do not like and do not approve of. We do not approve of their human rights violations, but we still engage with them. That is what we ought to be doing with the Chinese.

The People’s Republic is extremely strategic and long-term in its thinking—as my hon. Friend the Member for Shrewsbury and Atcham said, it has a 1,000-year strategy. When it sets out to achieve something, it invariably does. I would like my hon. Friend to focus on this line: while it might protest about AUKUS publicly, privately it will respect the fact that the west is standing up to its imperial ambitions. There is no doubt that China wants to become the dominant superpower in the world in regards to political, economic and military influence. We must accept that, but that does not mean we should stop dealing with it. We need to find a sensible way to work with China.

The Chinese are spending huge amounts of money on upgrading their submarine, space and ballistic missile capabilities. According to the Financial Times, in August they tested a nuclear-capable hypersonic missile, apparently to the surprise of the US and western intelligence. Why it was a surprise, I do not know, because we have known for several years that they have been trying to develop these weapons. Such demonstrations show the advanced capabilities of China’s modernised military.

We have witnessed the deterioration in Australian-Chinese relations and the bullying attitude to Australia over trade, which, of course, has spurred Australia on to spend a significant amount of its GDP upgrading its submarine capability to a nuclear-powered capability, so that it can spend more time at sea, hopefully undetected.

I fully welcome the AUKUS pact. I think it is the right thing to do. Hopefully, the UK as well as the US will take part in the production and technology of those submarines. AUKUS has been, to many, a bold step. We are pushing our global Britain credentials with a bigger role in the Indo-Pacific region. Importantly, as my hon. Friend says, we are working closely with our allies—something talked about in the integrated review. He mentioned the number of countries in the CPTPP partnership. One important country he did not mention, and which I would like to mention on the record, is South Korea. We have a trading agreement, and a good relationship, with it. It is one of those countries north of the South China sea that is also troubled by Chinese incursion.

There are still many areas that require productive and sensible China-Anglo dialogue. COP26 is an important milestone for the future of the UK’s climate change agenda and ambition. The UK produces around 1.1% of the world’s emissions, whereas China emits around 28% and accounts for almost two thirds of the growth in emissions since 2000. Clearly, we can set a good example to other countries to decarbonise more quickly and make a real difference to climate change, but we need alliances with other countries, so that they can do the same. We need China to come on board with that agenda. Any fallout over AUKUS will have consequences for other matters, as I have demonstrated with COP26, but I would like to think that it is of benefit to both the UK and China to continue with a constructive dialogue.

While we will always have our differences, and I do not hesitate to articulate our views vociferously to the Chinese when I talk to them, particularly over human rights, overall it is in both sides’ interests to have a realistic but frank dialogue in the future. The idea of breaking off all dialogue with China, as some would advocate, is simply cutting off our nose to spite our face. Worse still, as I have said, we would lose the chance to influence Chinese thinking on issues such as climate change.

This has been an important debate. I hope that my right hon. Friend the Minister will be able to take something from it: that while we want to stand up to China, we want to have a dialogue with it; that its human rights activities are unacceptable; and that we should start to reduce our reliance on Chinese investment.

[Geraint Davies (in the Chair)]

I will call the Front-Bench spokespeople at 10.28 am, so Mark Logan has just under eight minutes.

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[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Davies. As this is the first time I have spoken in Parliament since the tragic and senseless loss of our parliamentary colleague, Sir David Amess, I wish to put on record my own deep personal sorrow and condolences to his family for his loss.

I congratulate the hon. Member for Shrewsbury and Atcham (Daniel Kawczynski) on securing the debate. It is an important issue, and there is no doubt about his passion for the subject and for defending the AUKUS deal. There is also no doubt about his clear and persistent disdain for the EU, which came through very strongly in his words. The hon. Gentleman made some very important points about the behaviour of China that I agree with, particularly on its human rights record. Before I get to the substance of my speech, I would say that nobody should ever be bullied or intimidated about speaking out on these issues. That is just not acceptable under any circumstances.

AUKUS is directed against an increasingly aggressive China, but it has had the short-term effect of triggering one of the worst inter-ally crises in living memory. The fallout with France that ensued in the aftermath of the AUKUS deal announcement only plays into the hands of the Chinese. The French Foreign Minister was quoted as saying that the UK was engaging in its usual opportunism, which was why they did not recall the UK ambassador alongside the US and Australian ambassadors.

Maintaining unity with European allies and demonstrating military co-operation are not mutually exclusive. The French should have been involved at each and every stage of this pact’s development even if, ultimately, they would not play a leading role. This UK Government have squandered unity with key European allies who have existing, established presences in the Indo-Pacific area—namely the French—just for membership in this pact.

Common challenges are better faced when countries can trust each other, and that has never been more pertinent than in this case. Diplomatic duplicity and misleading allies is foolish at any time, and cannot contain China—if that is indeed the objective of the UK Government, apart from burning diplomatic bridges between the UK and France by giving Australia access to sensitive technology in the form of nuclear-powered submarines. I must say that our view, unlike that of the hon. Member for Strangford (Jim Shannon), is that this is tacitly encouraging nuclear proliferation, which we in the Scottish National party are morally, economically, environmentally and strategically against.

Despite the passionate defence from the hon. Member for Shrewsbury and Atcham, the AUKUS pact is indicative of UK fears that its status has diminished and is threatened by China. Better decisions will be made here in Westminster only when the UK embraces the fact that it is a middle power. Reluctance to accept that is leading to all kinds of fallout, as we have seen played out on the world stage.

[Sir Geoffrey Clifton-Brown]

I would question what the hon. Gentleman says about nuclear proliferation. If these submarines were going to carry nuclear weapons, he would possibly have a case, but these are only nuclear-powered submarines, and nuclear power is a relatively well-known technology that is certainly not covered by the treaties.

[Drew Hendry]

The hon. Gentleman would make that point, and that would be his defence; I would expect him to do that. However, the fact is that there will be nuclear weapons—nuclear-powered submarines—patrolling as a result of the deal. That is a matter of fact.

Australia has been under pressure since its Prime Minister called for an independent investigation into the origins of covid-19 in China. As we have heard, China has already imposed huge tariffs and restrictions on Australian exports, including wine, beef and barley, and banned coal imports outright. However, that Chinese aggression abroad is only matched by its aggression at home. There have been deadly skirmishes on the Indo-Chinese border. There is the appalling genocidal treatment of the Uyghur Muslims, the ongoing militarisation of the South China sea, military aircraft incursions into Taiwanese airspace, the widespread persecution of the Christians and the Falun Gong, and increased intimidation of the groups in inner Mongolia and Tibet. China has also trashed the Sino-British agreement, and stripped away residual rights of Hongkongers.

In part, this deal seems to message that the international community will not allow aggressive behaviour to go unchecked. Unfortunately, in reality, the posture of this Tory Government towards China remains ambiguous. Although China is described as a “systemic competitor” in this year’s integrated review, there have been several statements confirming that the UK does not want diplomatic tensions to undermine economic relations with Beijing, and that this is merely a war of words.

For instance, the Deputy Prime Minister stated in a leaked message to civil servants that the UK

“ought to be trading liberally around the world”,

regardless of whether our commercial partners comply with human rights standards. That was reiterated by the Foreign Secretary when questioned on this very leak at the recent Tory party conference. Perhaps the Minister might want to clarify her own view.

For the time being, it appears that UK-China relations will be binary and played out on two different levels—one diplomatic and the other economic. China regards the AUKUS pact and in many ways the phrase global Britain as confirmation of the UK standing on the side of the United States in a new cold war between Washington and Beijing. China also believes that a declining Britain does not have the capabilities to become an influential player in the Indo-Pacific region. Some have argued that the UK role in this alliance, in particular, is merely that of a third wheel. There are questions about whether this lack of meaningfulness is worth the provocation it has caused.

If this is an attempt by the UK to forge a meaningful security role post-Brexit, it is not that. More effort should be made to begin talks of a UK-EU defence and security deal. It underlines the reality that, after promises of taking control, the UK’s foreign and security policy is now ultimately decided in Washington.