China: Supply Chains

Lord Bowness Excerpts

Wednesday 1st July 2020 Lords Chamber

[Lord Grimstone of Boscobel]

My Lords, in general, as an open economy, we welcome foreign trade and investment where it supports UK growth and jobs. We do not accept investment that will compromise our national security. The noble Lord will be aware that the nuclear industry is one of our most highly regulated industries. He can rest assured that we would not accept any involvement from any party that did not meet our strict criteria.

[Lord Bowness (Con) [V]]

I add my congratulations to the Minister. First, the report referred to in my noble friend’s Question mentions the possibility of a free trade zone with the Five Eyes. Has Her Majesty’s Government specifically examined that proposal? Secondly, given the critical importance to China of the belt and road initiative, what approaches have we made to the countries of Asia and the Caucasus to join in putting moral pressure on China over Hong Kong, and about trade possibilities to assist us and those countries in dealing with China?

[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.