China: UK policy

John Howell Excerpts

Tuesday 7th May 2019 Westminster Hall

[John Howell (Henley) (Con)]

I will make a brief contribution. When I was appointed as the Prime Minister’s trade envoy to Nigeria, I was called in by the Department for International Trade and told that I would have to develop my own personal policy in relation to China, as I was going to come into contact with the Chinese all the time. Nothing was more exact than that. They are everywhere; they are bidding for all the major infrastructure projects, and doing so in a largely transparent way. That provides an enormous opportunity for us if we can get the terms of the deals right.

It was made clear that it was up to me how that should be handled. Should I see the Chinese as the enemy, as opponents or as potential friends and allies? Because I am that sort of person, I wanted to see them as potential allies. However, doing so means identifying the areas in which we can establish projects with them where we can, effectively, be subcontractors to them.

[Sir Oliver Letwin (West Dorset) (Con)]

Does it strike my hon. Friend as a little strange that he was given that advice?

[John Howell]

I do not find it strange in the slightest. It was absolutely accurate. To echo my hon. Friend the Member for Aldershot (Leo Docherty), it is an example of a practical approach to dealing with the Chinese on the ground in an overseas country.

[Sir Oliver Letwin]

But does it not strike my hon. Friend as a little strange that a country that for 4,000 years was half the world’s GDP, and that, as our hon. Friend the Member for Aldershot (Leo Docherty) pointed out, is reasserting its position now as a quarter of the world’s GDP and, by some standards, as the world’s largest economy, is one in relation to which our Department for International Trade believes it has to subcontract policy to a trade envoy?

[John Howell]

No, I do not find that strange at all. It gives me the flexibility I need as the trade envoy to Nigeria to deal with the Chinese in the way that best suits the opportunities that are available. That is certainly what I have done.

As I was saying, I am a friendly sort of individual, and I would like to see relationships built with the Chinese. However, doing that is difficult for a number of reasons. First, I quickly found that, whatever the product is, it is often quite shoddy. Do we want to be associated with that? Secondly, I found that no projects can be changed without a reference back to Beijing. That makes it difficult to deal with the projects on the ground as flexibly as I would like. Nobody on the ground has the ability to make the decision.

The last thing that I found, which is by far the most important, is that the Chinese leave nothing behind. When they come over to do a project, they bring an army of people to do it. They do not involve the local community or leave behind anything in the way of knowledge transfer or anything tangible. That is so different from the approach of British companies. For example, Unilever, which I know is a hybrid company, has taken on board the modern slavery agenda, and has largely eradicated these problems from not only the company itself but its supply chain. I have met some of the individual non-governmental organisations that have been involved with that.

My overall feeling is that we should treat the Chinese with caution, and examine the details of projects carefully to ensure that we can add value to the local community. Otherwise, there is no point doing them. There is no point helping to develop a country if we cannot involve people in the project itself.

--- Later in debate ---

[Helen Goodman]

The swings and turns have been peculiarly rapid. Under George Osborne, we were pressed strongly to engage economically with the Chinese; under the recently sacked Defence Secretary, the right hon. Member for South Staffordshire (Gavin Williamson), we were to have naval ships going into the South China sea. One does not normally expect to see such twists and turns in a mature European democracy.

The Foreign Affairs Committee report is excellent. It stated:

“China is seeking a role in the world commensurate with its growing economic power, and…This makes China a viable partner for the UK on some issues, but an active challenger on others.

The current framework of UK policy towards China reflects an unwillingness to face this reality. The UK’s approach risks prioritising economic considerations over other interests, values and national security...there does not appear to be a clear sense either across Government or within the Foreign and Commonwealth Office of what the overarching theme of a new policy towards China should be”.

The Committee also calls on the Government to publish a new strategy—that is a fair call.

[John Howell]

Will the hon. Lady give way?

[Helen Goodman]

I will give way, but I will not keep giving way, otherwise I will lose my time.

[John Howell]

The passage the hon. Lady just read out sums up exactly what I was saying. Furthermore, I treated my reaction to dealing with China with a great deal of seriousness.

[Helen Goodman]

I was not suggesting that the hon. Gentleman was not serious. In fact, he seemed to have a more serious approach to China than perhaps some members of the Government do. That is worrying.

The leak of discussions in the National Security Council was obviously wrong, but it was illuminating. We were shown that an unresolved dilemma and differences of view remain at the very top of Government. On the one hand, the Foreign Secretary, the Home Secretary, the then Defence Secretary and the International Trade Secretary argued against giving Huawei infrastructure contracts because of the security risks. On the other hand, the Prime Minister argued that such contracts should go ahead. We are left uncertain what the decision was, and why—