5 Tobias Ellwood debates involving the Department for International Trade

Tue 19th Jan 2021
Trade Bill
Commons Chamber

Consideration of Lords amendmentsPing Pong & Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons

Trade Bill

Tobias Ellwood Excerpts
Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Tuesday 19th January 2021

(3 years, 9 months ago)

Commons Chamber
Read Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Amendments as at 19 January 2021 - (19 Jan 2021)
There is not time to cover in detail all the amendments that I will vote for, as many others wish to speak and time is limited, but this is a defining moment in our history. The Brexit referendum in 2016 was divisive, but no one voted to lessen our standards and safeguards and no one voted to dilute our democracy. We need to pass the Lords amendments so that we can continue to be a beacon of light and hope across the world, championing the human rights of all people.
Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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I am an internationalist. I came into politics to encourage Britain to play a more than influential role on the international stage. We certainly have a track record of building alliances and stepping forward when other nations hesitate as a force for good, but the world is changing fast: power bases are shifting and threats are diversifying and, indeed, intensifying. What the debate illustrates is a temporary absence in clarity about what we now stand for, what we believe in and what we are willing to defend. Those are the basic benchmarks that frame our international standing, and they can all be summed up in the absence of an integrated review. We await the Government’s defence, security and foreign policy review—to give it its full name—which is the critical statement of intent that defines our ambitions on the international stage, assesses the current and emerging threats and gives clarity on how our soft and hard power capabilities should be upgraded. Without that, the term global Britain lacks direction, and there is no strategic or doctrinal clarity over how to approach the geopolitical challenges posed not least by China.

International opinion on China is clearly changing, following its conduct in suppressing the pandemic’s outbreak, challenging security laws in Hong Kong and continued militarisation of the South China sea as well as, more widely, snaring ever more countries in debt through its One Belt, One Road programme and telecoms programmes. The Foreign Secretary broke new ground last week by speaking so robustly about China’s breaches in human rights, with over a million Uyghurs in political re-education camps, extensive use of surveillance targeting minorities and systematic restrictions on the freedom of religion. That came on the back of the Government’s changes to telecoms policy to remove high-risk vendors from our critical national infrastructure.

We must not lose momentum. For too long, the west bit its tongue as China ignored international trade norms and exercised human rights abuses while we still hoped that it would mature into a responsible international citizen. That clearly is not going to happen. China is on a geopolitical collision course with the west, taking full advantage of our wobbly international rules-based order while we remain in denial.

Today, President Trump is in his last day of office, and President-elect Biden has made it clear that his foreign policy objectives are to recommit to building western alliances and to attempt to address the geopolitical challenges posed by China. The Lords amendment is about offering strategic clarity directed not just at China and standing up to its human rights abuses, but at the United States, our closest ally. This is an opportunity for Britain to craft a post-Brexit international role as we assume the G7 presidency.

The world watched and hesitated when genocide took place in Rwanda and, indeed, in Syria. Let us not hesitate again. Let us have the moral courage to stand tall on what we believe in and what we are willing to defend. It saddens me that I am having to rebel today to encourage my Government to take the moral high ground. It should be our default position.

Sammy Wilson Portrait Sammy Wilson
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I rise to support Lords amendment 8, in relation to Northern Ireland, and Lords amendment 3, in relation to acts of genocide. First of all, I will deal with Lords amendment 8. I believe that it is a necessity that we have in the Bill a commitment that Northern Ireland will not be excluded from the benefits of any trade agreements that this country reaches with the rest of the world. People in Northern Ireland are still reeling from that impact that the withdrawal agreement, and particularly the Northern Ireland protocol, have had on their economy and indeed on their preferences and their ability to purchase goods from other parts of the United Kingdom.

Despite some of the efforts made to undo and mitigate the impact of the protocol, it is clear that the withdrawal agreement that we reached with the EU will have a detrimental impact on the Northern Ireland economy. Lords amendment 8 seeks to ensure that, when we enter into future trade agreements with other parts of the world, the impact and benefit of those agreements are not reduced as a result of the protocol. A commitment that no agreement can be ratified until it is ensured that Northern Ireland will have unfettered access to the GB market and services coming from GB is very important.

Lords amendment 3 concerns genocide. I have listened to the arguments—that we are handing control over to the courts; that we are diminishing the role of Parliament; that such a situation would be unworkable—but I believe that, first of all, this country has an important duty to send out a message when entering into trade agreements with other parts of the world—that if the Governments of those countries are guilty of abusing their population or seeking to wipe out certain sections of their population, we will not do business with them. We have talked about taking a lead on the global stage now that we have left the EU. Well, here is an opportunity to make clear in legislation where we stand on this issue and that if Governments wish to do business with the fifth biggest economy in the world, we expect certain standards of them.

I do not accept that we would be giving too much power to judges. First of all, this is a very specific power and not the thin end of the wedge, as has been suggested, and if we wished to give more power to the judges, we would have to amend the legislation. We are simply saying, “Look, the only body capable of making a judgment about whether genocide has occurred is the courts.” In fact, it would be wrong for Parliament to have that power. It would be abused, and our arguments against genocide could be diminished, because people could say we made them only for political reasons, or because the majority in this Parliament do not like those people or have some other axe to grind. I therefore think it is important that that power is in the Bill.

Assurance needs to be given to people in Northern Ireland that we still remain part of the United Kingdom and will have the benefits of United Kingdom trade deals, and assurance still needs to be given to people across the world who are being persecuted. The best way of doing that is to include both amendments in the Bill.

Global Britain

Tobias Ellwood Excerpts
Monday 11th January 2021

(3 years, 9 months ago)

Commons Chamber
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Elizabeth Truss Portrait The Secretary of State for International Trade (Elizabeth Truss)
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I beg to move,

That this House has considered Global Britain.

I am delighted to open this debate on global Britain when, for the first time in 48 years, we now have full control of our trade policy. Back in 1846, Richard Cobden inspired people in Manchester with his belief that free trade would be

“the greatest revolution that ever happened in the world’s history…drawing men together, thrusting aside…antagonism…and uniting us in the bonds of eternal peace.”

That revolution continues today, as for the first time in nearly half a century we are a sovereign trading nation free to pursue British interests while promoting British values. Our newly independent trade policy will create jobs, grow our slice of the global pie, and unlock great swathes of the world to the best of Britain.

As we recover from covid-19, we need to think radically about how we generate economic growth and how we are going to use our new global platform in 2021 to promote free and fair trade—how we are going to take on those countries that try to cheat and to undermine free enterprise. In 2020, we negotiated trade agreements covering 63 nations and the European Union, and in 2021 we will use this year, including our presidency of the G7, to champion free and fair trade in an era rife with pernicious practices. We will promote modern rules that are relevant to people’s lives for digital and data trade. We will champion high environmental and animal welfare standards in a science-led approach, and we will push for modernisation of the World Trade Organisation and trade agreements to reflect our values of free enterprise and fair play. We will also build an advanced network of trade deals, from the Americas to the Indo-Pacific, with the UK at its heart as a global services and technology hub. We have already reached deals covering 63% of UK trade, well on our way to our manifesto target of 80% in three years. We want to hit that target and to deepen our existing relationships in areas such as services and technology.

Exports are equivalent to nearly a third of our national income. Trade equals jobs. A job means independence and security, the realisation of our dreams, funding public services and the future prospects of our country. The deals we have done with the EU and our partners across the world, from South Africa to South Korea, mean that our traders continue to enjoy preferential access to world markets.

We have secured arrangements with Turkey that mean that Ford in Dagenham can continue to export its engines tariff-free. We have secured access to the Canadian market for our beef producers, such as the Foyle Food Group in Northern Ireland. We have secured tariff-free access into Mexico for our car exporters such as Jaguar Land Rover, while Scotch whisky—one of our biggest exports—continues to enter markets such as Singapore tariff-free and stays recognised.

All in all, this adds up to £885 billion of trade that we have secured. In addition, we have been able to go further and faster in our deal with Japan, protecting the free flow of data, which benefits industries such as FinTech and computer gaming, regulatory dialogue on financial services and improved mobility provisions, including allowing spouses to travel with businesspeople. We have secured additional protections for our fantastic creative industries, from music to TV, and recognition for geographical indications across the UK, from Welsh lamb to Scotch beef, from Armagh Bramley apples to English sparkling wine, subject to Japanese domestic processes.

This platform allows us to step up this year to show our full potential as president of the G7 and as an independent trading nation. At the G7, we will work to reform the World Trade Organisation, make progress on data and digital trade and promote greener trade. Our new UK global tariff will see around 57% of our imports entering our market tariff-free—more than the 44% that we had under the EU.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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My right hon. Friend is making a powerful start to promoting global Britain. She speaks of the G7 and the opportunity for us to make our mark in the world. Does she believe that now is the right time to move from the G7 to the G10, and to include Korea, India, and Australia? That would represent over half the world’s GDP in order for us to start looking at the challenges that we face of updating the United Nations, NATO and the WTO, and to make sure that we are in a position to offer a counterweight to China.

Elizabeth Truss Portrait Elizabeth Truss
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My right hon. Friend makes a very powerful point. Allies such as Australia, South Korea and India will be key to forging that group of democratic nations who can stand up for democracy, human rights and fair and free trade, and, of course, we are very committed to working with them this year.

Our new global tariff, as I said, will eliminate tariffs on more than 57% of imports. In particular, it will eliminate tariffs on 100 environmental goods. In short, our new tariff regime is lower, simpler and greener.

Furthermore, we will be working with our friends and family across the world to drive forward free and fair trade, setting the global standard for trade in the 21st century. We are already in deep negotiations with the United States, Australia and New Zealand, and, this year, we will apply to one of the most dynamic trading areas on earth—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Joining is part of our plan to grow our economy by making it far easier for British goods to reach our friends in Asia and the Americas. This high standards agreement would align the UK with some of the world’s fastest growing economies in a free trade area covering nearly £9 trillion of GDP. We will also deepen our relationships with countries such as Canada, Mexico, South Korea and Israel. As well as this, we are working closely with India, the world’s largest democracy, on an enhanced trade partnership, reflecting our mutual interest in technology and innovation. We are also in talks with Brazil and our allies in the Gulf.

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Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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Looking back in our timeline of history, we see that it is punctuated by years where dramatic events and their consequences have altered the course of history. I believe that 2021 will be such a year, when we repair and rebuild our post-covid world. We will also better appreciate the frailty of our global order, with authoritarianism on the rise, the disunity of the west and a fast-changing relationship with an ever more assertive China. If 2020 was the year in which we calibrated our view on China and saw that it was not going to mature into the responsible global citizen we had hoped for, in 2021 we are likely to see Beijing unashamedly advance its own competing strategic agenda, exploiting battered economies across the globe and ensnaring ever more states into debt through its infrastructure and digital programmes. We face an inflection point this year. Either we support global democracy and repair it, or we allow the world to splinter into two dangerously competing spheres of influence.

Of course, 2021 brings a change in guard at the White House, with President-elect Biden promising to commit to rebuild alliances, to stand up against geopolitical threats and to return a sense of purpose to what the west believes in, stands for and is willing to defend. So this is a pivotal year and a time for Britain to step forward. Let us recall the last time there was a global reset. It involved the United States and Britain. It was Roosevelt and Churchill, through the Atlantic charter, who set the tone for the new international architecture, which now needs to be revisited.

The opportunity for Britain cannot be overstated, but our hard work is cut out in front of us. We talk up global Britain and the special relationship, but our international stock is not what it was. We have become too risk-averse and too distracted. Mention has been made of cuts to our soft power because of our aid budget. Indeed, the integrated review has yet to be completed. We need these answers in order to understand what our defence posture should be.

I encourage No. 10 to expand its bandwidth so that we can reassess and confirm our place in the world. The international to-do list is huge: reviving international organisations, for example, the United Nations and the World Trade Organisation; updating the Geneva conventions; securing a viable climate change agreement; and, of course, coming up with a unified strategy on China. None of those issues can be addressed without the appropriate alliance. I have said this before, but my single recommendation to the Government today is to advance and empower the G7 group of nations, widening it to include Australia, India and Korea, and advancing it from a talking shop to a new coalition with genuine clout. This is half the world’s GDP around one table. This formidable partnership, committed to collective security, democracy and the international rule of law, can be the vehicle that offers the leadership and designs the fresh international architecture our world now desperately requires. I encourage the Government to work with President-elect Biden and make this happen.

Japan Free Trade Agreement

Tobias Ellwood Excerpts
Monday 14th September 2020

(4 years, 1 month ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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I have recently visited Hitachi and Nissan, both of which are pleased with the progress we have made in the Japan deal. Of course, like all of us, they want a deal with the EU, but it has to be the right deal for Britain. My lesson, as Trade Secretary, is that we have to be prepared to hold out for the right deal.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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May I join others in congratulating my right hon. Friend on securing such an important deal? I hope she goes on to secure future deals for Britain. May I also encourage her to ensure that this new opportunity is considered in the integrated review, because our economic security and our national security go hand in hand?

Elizabeth Truss Portrait Elizabeth Truss
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My right hon. Friend is right on that, and one important aspect of this deal and our relationship with Japan is that it is a leading free enterprise democracy. We need to be working with like-minded countries, not only to protect free trade across the world, but to make sure trade is fair. That is one of the huge benefits of joining CPTPP: it is a high standards trade agreement of countries that believe in free trade.

Oral Answers to Questions

Tobias Ellwood Excerpts
Tuesday 12th May 2020

(4 years, 5 months ago)

Commons Chamber
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Ben Wallace Portrait Mr Wallace
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The Royal Navy and the Royal Australian Navy collaborate across the globe on a near daily basis. Only this morning, I had an hour-long conversation with my counterpart in Australia. The Type 26 Hunter-class frigate partnership has flourished through the Global Combat Ship user group. Operationally, we have worked closely on the management and challenges of covid-19 in the maritime sector, as well as in the Strait of Hormuz, providing security to global shipping.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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I echo the comments of the Defence Secretary and say thank you to our armed forces for what they are doing to tackle the coronavirus. The British people may have come together as one nation, but the same cannot be said on an international level, which is a very different picture. Our world order was already in a fragile state, but now, under the fog of covid-19, countries such as China and Russia are exploiting this global distraction to further their own geopolitical agendas. May I ask him to call for an urgent meeting of the National Security Council to review our competitors’ activities, which, left unchecked, could lead to serious conflict in the future?

Ben Wallace Portrait Mr Wallace
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My right hon. Friend makes an important point that there are adversaries and competitors around the world seeking to use this horrendous outbreak not only to exploit our differences, but to further their ambitions. I urge them to focus on the matter at hand, which is tackling covid collectively around the world, rather than taking advantage of that. On the point about the NSC, the decision to call an NSC meeting is a matter for the Government Security Directorate in the Cabinet Office, the Cabinet and the Prime Minister. It is not the case that, by not having such a meeting, we have no agenda on security. We meet the threat every single day and, indeed, many of the decisions made at NSC are enduring and do not need to be refreshed unless there is a major turn of events. We will keep the situation under review, as will, I know, my right hon. Friend the Prime Minister.

Global Britain

Tobias Ellwood Excerpts
Thursday 30th January 2020

(4 years, 9 months ago)

Commons Chamber
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Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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It is pleasure to follow the hon. Member for Brentford and Isleworth (Ruth Cadbury).

May I first pay tribute to my hon. Friend the Member for Wolverhampton South West (Stuart Anderson), a fellow Green Jacket, on the maiden speech? The Green Jackets were famous for many things, but one of the most important things they did was to turn the red tunics into green, which meant that they were less vulnerable on the battlefield—something that is very good indeed, and occasionally warranted here as well. I am really pleased to see him wearing his regimental tie and taking his place on these Benches, and to congratulate him on a very powerful and passionate message. He spoke about being on the brink of despair, going through that, and his journey back. He is now able to share that. I hope that many veterans across Britain will hear his story and be stronger for it, recognising that there are people there to help and there is a life after being in the armed forces. Not everybody is affected in the way that as he was, but he has absolutely turned his life around, and it is fantastic to see him here in the Chamber today.

I know that my hon. Friend speaks with experience, commitment and passion on defence matters, so perhaps I could urge him to stand for the Defence Committee in due course. That segues me nicely into saying—if I may, with your indulgence, Madam Deputy Speaker—thank you to the House for the honour of being elected Chair of the Defence Committee. I pay tribute to the other candidates who stood in this contest, all of them very passionate about defence in their own ways.

I welcome the Secretary of State’s opening statement in this important debate on global Britain. Marking out a vision of where our country needs to go in these difficult and turbulent times is very important. For those of us who have been in the House a little while, the past three years have been a bit challenging in terms of working out where Britain should be going. We have been a bit distracted by other issues. Whatever one’s views on what happens on 31 January, it is absolutely clear that we can now provide a determined direction of travel for this country. We can send a message to people across the world that we have stopped arguing about something that we had huge disagreements over and that, whatever our previous views, we are on track to move forward.

In that guise, we perhaps lost a bit of confidence. It is worth reminding ourselves of the strengths that Britain has when it comes to financial services, pharmaceuticals, aerospace, oil and gas, life sciences and creative industries. We are European leaders, if not global leaders, in policing intelligence, and, of course, the military. We play our role not just in Europe but across the world. I hope that now that we have the decision of Brexit behind us, we can pursue that, as we heard the Secretary of State say.

Anthony Mangnall Portrait Anthony Mangnall (Totnes) (Con)
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Does my right hon. Friend recognise that the shipping sector—the maritime sector—is also of huge importance, as we are a global leader in this country? Leaving the European Union but also being able to create 10 new free ports will add to that dominance and supremacy.

Tobias Ellwood Portrait Mr Ellwood
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My hon. Friend is absolutely right. Some 90% of our trade still goes by ship. However, not all shipping lanes are as free as they should be.

Talking about global Britain leads to a desire to speak about trade and the economy. That is important, but I am going to focus on security, because, as the first line of the original 2010 strategic defence and security review reminds us, economic security and national security are interdependent of each other. If we do not have national security, we cannot build the economy in order to prosper. If we invest in defence, it is not just for the defence budget—we are also increasing our prosperity, from which all other budgets then benefit from as well.

There is perhaps some optimism on the Conservative Benches following the general election, and a sense of determination. We have a mandate and we have the energy to, we hope, be in office for a number of years, and to craft where Britain should go over the next decade. However, that decade is going to get more dangerous and more complex than at any time since the cold war. The character of conflict is changing. It is moving from arguments and battles over terrain to the digital domain as we become ever more reliant on the digital economy. We have seen the rise of Russia. We have seen what Iran is up to. Extremism has not disappeared. We pat ourselves on the back that somehow we have got rid of the caliphate in the middle east, but extremism continues. We saw during the interruption in the general election that terrorism remains rife. Those challenges are dispersing and getting more complex, and they are challenges to our economy and our prosperity.

There are two issues very much at the forefront that we need to focus on, perhaps in the longer term, one of which is climate change and its consequences. One in four of the world’s population will come from Africa. They are not producing the jobs there that they need, and that will lead to huge migrational challenges. Some 80% of the world’s population lives within 50 miles of the coastline. If sea levels rise, where will those people go? How will those economies be affected? How will Bournemouth be affected—my constituency and that of my right hon. Friend the Minister as well?

Stewart Malcolm McDonald Portrait Stewart Malcolm McDonald
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Will the right hon. Gentleman give way?

Tobias Ellwood Portrait Mr Ellwood
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On Bournemouth? I would be delighted.

Stewart Malcolm McDonald Portrait Stewart Malcolm McDonald
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Well, there is a man who has read the global strategic trends document of the Ministry of Defence. The right hon. Gentleman is right to say that this is important for his constituency, but it is also important for Scotland, particularly the north of Scotland, because if we do not deal with it properly, the rules that currently govern the South China sea will, all of a sudden, govern the high north and the north Atlantic—and that, as I am sure he would agree, would be a disaster.

Tobias Ellwood Portrait Mr Ellwood
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I agree with the hon. Gentleman—who is now my hon. Friend, as we will hopefully work more closely on national defence issues for the United Kingdom. He makes an important point about these being issues that we need to tackle. When it comes to defence, there is an immediate knee-jerk reaction to speak about platforms—have we got enough of them and so forth? That is important, and we do no doubt face some challenges, but it is also about capabilities.

I go back to the fact that the character of war is changing. We are in constant conflict and competition. Why bother invading or, indeed, attacking a country when it is possible to digitally impose problems for any town, city or community from afar, through a laptop? Elections are being interfered with, and there is not even an international organisation that countries can go to and say, “My election has been interfered with by another state. Please can you take action?”

The second issue is to do with the rise of China. It has a President who has got the job for life, and in our lifetime China will become more dominant economically, technologically and militarily than the United States. It is setting its own rules on how it does business, which poses some huge challenges for us. We need to have an adult conversation with China to better understand it and ask, “What are the rules that we should be following?” We talk about the erosion of the rules-based order, but who is willing to step forward and say, “I’m going to challenge that—I’m going to defend the rules-based order or upgrade those rules, because they are out of date”? Let us not forget that many of them were created in the Bretton Woods conversations after the second world war. China was excluded, and it reminds us of that all the time. It needs to be included in a conversation with international organisations, whether it be the UN or the OECD, so that the rules and standards that we follow are observed, because they have not been.

China is doing its own thing, and we see that in the big debate we have just had over Huawei. Whether it is Huawei, Tencent or China Telecom, all those companies are obliged to provide sensitive information to the state. We do not know the relationship between Huawei and the Chinese army. We have no idea what the intelligence services do with that information. That is why concern has been expressed vividly in this House about the relationship that we have chosen for our 5G roll-out.

We were not in the room when that decision was made in the National Security Council. Experts are there to give the Prime Minister advice. My message to the Government is: we have taken that decision, but can we put a time limit on our use of Huawei or, indeed, any Chinese companies? Can we develop our own western capability, so that we can wean ourselves off the use of Chinese operations? We cannot predict the security that we will require in the future, or even today.

Carol Monaghan Portrait Carol Monaghan (Glasgow North West) (SNP)
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I thank the right hon. Gentleman for giving way and congratulate him on his appointment as Chair of the Defence Committee. More and more we are seeing Chinese companies coming in and buying up companies carrying out research here in the UK. Because there is not enough Government funding, even where we are developing our own technology those companies have to seek funding elsewhere, and that is where they are getting it.

Tobias Ellwood Portrait Mr Ellwood
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The hon. Lady is right. There is an uneven playing field that needs to be addressed. Why is it that Facebook, Amazon and eBay cannot operate in China, but Alibaba, Huawei and others can operate here?

The scale of China is simply enormous. Alibaba is the size of eBay and Amazon put together. Huawei sells more mobile phones than Apple. The scale of it and the injection of cash from the Chinese Government is colossal, which is why we need to have a serious conversation. Given the importance that America, Australia and New Zealand place on this, we need a solution. I know that Huawei’s involvement is in the non-core elements of the 5G network and has been capped. But we made the F-35 stealth fighter—that was essentially the Five Eyes community coming together to make state-of-the-art equipment. Let us do the same with 5G. We should not just turn to Cisco, Ericsson or Nokia and say, “Please catch up with Huawei.” They will not be able to do it. We need the Prime Minister to talk with President Trump and say, “Over the next five years, let’s create the 5G and 6G capability that will allow us to have our own identity.”

If we do not, I predict that there will be a splintering of the internet. The rules that China is adopting and enforcing for its own people and for countries that use its technologies mean that there will be two operations and two versions of the economy. We cannot be caught on the wrong side of the argument in history, so we must develop our own western capabilities.

Richard Graham Portrait Richard Graham
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My right hon. Friend has made a number of great points about technology and how we and our Five Eyes partners need to develop a serious alternative. Does he also agree that there is a danger in the House sometimes of criticising almost everything that China does? To give one small example, when the Chinese automotive company Geely bought the London Taxi Company, it converted the engines to electric and is now exporting them to France and the Netherlands from the UK. It is a good example of what Chinese investment can achieve that is positive for the UK.

Tobias Ellwood Portrait Mr Ellwood
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My hon. Friend is right, and I pay tribute to him for his knowledge, expertise and desire to educate the rest of us on the importance of what China is doing. There is a lot of duality in what China provides. It is providing some of the greenest capabilities in the world, but it is investing more in coal—it is building hundreds more coal-fired power stations at the very time when we need to wean ourselves off coal.

Militarily, I am also concerned. China’s space budget alone is £7 billion a year. Twenty years ago, its military budget was the same as ours. Today, it is five times that amount. Its navy grows the size of our Navy every single year. Those are my concerns in the longer term, and that is why we need an adult conversation with China, to work out what international rules we should be following.

Finally, I turn to the review that we will conduct. This is a pivotal moment for the UK to recognise and take stock of the threats that we face. We need a sober assessment of how the world is changing and an honest review of our own capabilities. Our battle tank is 20 years old; it needs an upgrade. Our aircraft carriers are fantastic, but no further investment in the Navy means that the rest of the surface fleet has been depleted. In the Gulf war, we had 36 fast-jet squadrons; today we have six. We need confirmation of our capabilities and our aspirations. What role do we seek to play on the international stage? We then need to commit to what is needed to get there, which will require an increase in our defence budget. We need to upgrade if we want to play that role.

Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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May I warmly congratulate my right hon. Friend on succeeding me as Chair of the Defence Committee? I thank him belatedly for the courage he showed when, as a Defence Minister, he argued at the Dispatch Box that we needed to spend more on defence. I urge him, in what I can assure him is an influential new role for him, to make sure that the new combined defence review takes place before, and not after, the comprehensive spending round. Otherwise, the same thing will happen that happened with the national security capability review, and there will be a fight between the intelligence services on the one hand and conventional forces on the other.

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Tobias Ellwood Portrait Mr Ellwood
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I am grateful for my right hon. Friend’s kind comments, and I look forward to a smooth handover. I have a lot to learn from him, and he has done a great job as Chair. He makes a valid point: if the review is to be a fair assessment of our capabilities, we must ensure that it is not tied down by the limitations of any Budget.

I conclude by saying how passionate I am about defence, and I am delighted to take on the role of Chair of the Committee. I want to make it clear: we are managing the threats we face at the moment, but they are getting bigger and more complex, and we need to upgrade our capabilities. I believe we can win the argument for further investment if we take the nation and Parliament with us. Potholes and the NHS get more money because this place makes the noise. I will lead the charge to educate as many people as possible and say, “This is what we should be doing with our armed forces. This is how we can stand up on the international stage. This is what we must do to lead in an uncertain world.” That is what Britain should be doing in the future.

None Portrait Several hon. Members rose—
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