China: Supply Chains

Lord Robathan Excerpts

Wednesday 1st July 2020 Lords Chamber

[Lord Grimstone of Boscobel]

At the moment, trade between China and the UK amounts to around £80 billion a year. It is a very important trading partner for us, but I repeat that we are very clear-eyed about this. We take good care as to where our national interest lies, and we will not hesitate to intervene in any areas where we feel that it is jeopardised.

[Lord Robathan (Con) [V]]

I too welcome my noble friend the Minister to the Dispatch Box. We know that China ignores World Trade Organization rules. He mentioned our attitude towards the belt and road initiative, but should we now see it as a means of spreading Chinese economic power and influence while expecting deference or even subservience over any Chinese misbehaviour? I think particularly of the ban on Australian beef, tariffs and threats of more sanctions against our Five Eyes ally, Australia. Should we not act accordingly on Chinese trade and the BRI?

[Lord Grimstone of Boscobel]

My Lords, I do not think that subservience is a safe way to conduct policy with China. I have a very strong belief that mutual respect is the way forward and, I repeat again, it is mutual respect while having our eyes wide open. We recognise that some countries have had a difficult experience with BRI projects, including regarding debt sustainability, transparency and negative local impacts. We are much engaged in dialogue with China to make sure that all investments of that sort benefit the world rather than just China.