UK-China Relations

Tony Vaughan Excerpts

Wednesday 26th March 2025 Westminster Hall

[Gregory Stafford (Farnham and Bordon) (Con)]

I beg to move,

That this House has considered UK-China relations.

It is a pleasure to serve under your chairmanship, Ms Lewell. I welcome the opportunity to raise in this House the opportunities and implications of our relationship with China. I declare an interest as a member of the Inter-Parliamentary Alliance on China, alongside other colleagues in attendance today, who have consistently raised concerns over the UK’s relationship with China.

Since Brexit, the UK has rightly sought to establish new economic and trade relationships beyond Europe, aiming to diversify access to key commodities. As a result, China has become the UK’s third largest trading partner. This economic interdependence presents both an opportunity and a risk, which we must navigate carefully to uphold security, human rights and our fundamental values. Yet we have already seen how economic leverage can be misused. The UK-China economic and financial dialogue in January resulted in a rather uninspiring £600 million deal—hardly the sign of a robust, or indeed equitable, economic relationship. This is not a partnership; it is dependency, and dependency makes us vulnerable.

Take the UK’s reliance on China for renewable energy components, for example. My right hon. Friend the Leader of the Opposition made it clear in her policy renewal speech last Tuesday that the best way to deliver clear energy and a better environment is with the markets. However, the reality is that much of our push for net zero is built on Chinese supply chains, particularly in solar panels, wind farms and electric vehicles. A long-term net zero strategy cannot mean long-term reliance on China.

[Tony Vaughan (Folkestone and Hythe) (Lab)]

If the mechanisms and safeguards were robust enough to ensure that there is not slave labour in supply chains, would that address the hon. Member’s concern?

[Gregory Stafford]

I will come on to slave labour almost immediately, but to answer the hon. Member directly, I think the security concerns are too great. I welcome safeguards to remove slave labour, but there are still concerns beyond that that we should be looking at.

--- Later in debate ---

[Gregory Stafford]

The hon. Member is entirely right. I would be very surprised if anyone in the Chamber did not agree with him. The key point is how we move from what I think is relatively universal agreement to actual sanctions and enforcement, to make sure that our manufacturers are competing on a level playing field.

As an example of that, a 2023 report from the Helena Kennedy Centre for International Justice at Sheffield Hallam University noted that in 2020, China produced 75% of the global supply of solar grade polysilicon, and 45% of that was manufactured in Xinjiang. That is why the amendment that I alluded to earlier was crucial to cleaning up the supply chains and preventing the UK from becoming core to Chinese consumption.

[Tony Vaughan]

Will the hon. Member give way?

[Gregory Stafford]

I will in a minute; I just want to make a bit of progress.

On Times Radio, the Housing Minister gave his “absolute” guarantee that solar panels for GB Energy projects on hospitals and schools will not include slave labour. But without legal requirements for companies to comply, will the Minister outline how she can be sure that such labour will not be involved?

China’s dominance in trade also extends to industrial production. The Intelligence and Security Committee report in July 2023 warned that the Chinese Communist party had penetrated “every sector” of the UK economy, leaving us with a £32 billion trade deficit. The consequences of this economic entanglement are already apparent. When a recent shipment from Xinjiang entered UK airports via European Cargo, neither Border Force nor the responsible Government Departments took the necessary steps to intervene. The failure to act leaves our economy exposed and less competitive.

Meanwhile, China remains the world’s largest carbon emitter: it emits 15 billion tonnes of CO₂ annually and powers industries with coal while exporting steel and electric vehicles at artificially low prices. What is the UK doing? I urge the Minister to clarify whether the Government are considering measures similar to those that, as my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) pointed out, the US is taking.

[Tony Vaughan]

Does the hon. Member not agree that the correct characterisation of the amendment to the Great British Energy Bill that he mentioned is that it was about restricting how the Government spend money on GB Energy? If it had been about a whole of industry approach, and stopping both private companies and the Government purchasing solar panels tainted by slave labour, that might have made sense.

[Gregory Stafford]

I fear that the hon. Member is dancing on the head of a pin there. To be frank, I do not agree with him on that. I think the Government should be really clear about what they are actually going to do to—

--- Later in debate ---

[Tony Vaughan (Folkestone and Hythe) (Lab)]

It is a pleasure to serve under your chairship, Ms Lewell.

I congratulate the hon. Member for Farnham and Bordon (Gregory Stafford) on securing this important debate. I acknowledge my interest as chair of the all-party parliamentary China group. I pay tribute to the Minister for her role in improving the UK-China relationship and the UK’s bilateral relationships with other Asian nations such as the Philippines and Thailand. These are the fastest-growing economies in the world, and we need to trade and invest where the economic action is.

I participated in a cross-party delegation trip to Beijing at the start of this year. During the trip, it was clear to me—with my eyes wide open—that there is much that the UK and China can co-operate on. The focus of the delegation was on how the UK and China can strengthen global artificial intelligence safety regulations, and what learning we should share regarding our domestic approaches to that issue. It was clear that the UK and China can also increase co-operation on trade, especially by increasing trade in agrifood, life sciences, pharmaceuticals, education and professional services. There is also more we can do together to tackle climate change, promote biodiversity and strengthen global pandemic preparedness.

[Gregory Stafford]

I am fascinated by the argument the hon. Member is developing. Could he point to anything significant that China is doing to reduce its footprint?

[Tony Vaughan]

It is difficult to see how we are going to address these huge global challenges without involving China. I am not advocating for China, but relevant to the hon. Member’s question is the fact that it has a hugely fast-growing green energy technology sector. Of course China has huge carbon omissions as well, and that is another issue.

[Edward Morello (West Dorset) (LD)]

To answer the question from the hon. Member for Farnham and Bordon, 35% of China’s energy is renewable energy, which is up from 0% 15 years ago. By the end of this decade, given the rate at which it is expanding, China will be responsible for 60% of the globe’s renewable energy production.

[Tony Vaughan]

I am grateful for the hon. Member’s intervention; he is more on top of the statistics than I am.

With China being a member of the G20 and the UN Security Council, and the third-largest trading partner for the UK—if one includes Hong Kong—it is entirely logical that the Government should aspire to a more stable and consistent relationship. To do anything different would not be in the UK’s national interests.

[Mike Martin (Tunbridge Wells) (LD)]

There are well-documented links between Russia and China. It is publicised and well-known that China buys Russia’s oil and all the rest of it. We are fighting Russia at the moment in Europe; it is our primary adversary. Why on earth would we want to have a close and stable relationship with China?

[Tony Vaughan]

As I said, I am not advocating for China; I am saying that, as the third-largest trading partner with Hong Kong, we cannot pretend that it does not exist. We cannot pretend that there is no role for building dialogue and engagement. The reality is that, given the way the tectonic plates of global affairs are moving, it is in China’s interests to have a stable Europe. Who else will buy its electric cars, for example? There is an evolution in the way we should look at these things, but I agree with the hon. Gentleman’s general point.

Over the last 14 years, British foreign policy towards China resembled a rollercoaster. We had the golden era under the Cameron Government, when President Xi enjoyed a state visit and, as the Foreign Secretary recently reminded us, had a beer in a pub with the Prime Minister. We had the May Government’s justified scepticism about China General Nuclear Power Corporation’s involvement in Hinkley, and then the Johnson Government’s confused China policy, culminating in Liz Truss’s cold war 2.0-style policy. No serious nation should aim to have a bilateral relationship with the world’s second-largest economy that resembles a fairground ride. The Chancellor’s trip to China for the economic and financial dialogue in January, concluding agreements of up to £1 billion for the UK economy over five years, is an example of how taking a grown-up relationship to China is in our national interest.

[Richard Foord (Honiton and Sidmouth) (LD)]

The Intelligence and Security Committee published a report on China in 2023. The public version said that it is China’s

“ambition at a global level—to become a technological and economic superpower, on which other countries are reliant—that poses a national security threat to the UK.”

How does the hon. Gentleman see it?

[Tony Vaughan]

I completely agree that a national security-first approach to China must be the position. As I understand it, that is the position of the Government. That is why the position taken on the embassy is a national security issue; I know that there has been some debate about that, but I am not in a position to second-guess MI6, MI5 and the security services, and that has to be the lens through which we look at these issues.

I have referred to the EFD outcomes. Critics of engagement overlook the fact that some nations who took a robust approach to China were still engaging in the background. If we step back while competitors—including the United States, which has also taken a robust approach to China—are engaging, we are missing a trick. The UK had not sent a Prime Minister to China in many years. I am pleased that the Government aim to have a relationship with China based on what I understand to be a national security approach, while also co-operating with, competing with and challenging China where appropriate. Engaging with does not, of course, meaning agreeing with.

[Jim Shannon]

I have listened to what the hon. Gentleman has said. I am conscious of what he is putting forward, but I do not hear anything in his speech to do with human rights or religious persecution. We must make that central to our economic business with China. That is the Minister’s mission, and I hope the hon. Gentleman will come on to that shortly and reassure us that those are also his thoughts.

[Tony Vaughan]

That is exactly what I am now moving on to. As I said, engaging with does not mean agreeing with. Part of our stable and consistent relationship with China involves raising human rights concerns with it, stably and consistently, as the Prime Minister did with the case of Jimmy Lai when he met President Xi last year. I recently met Jimmy Lai’s son Sebastien and the barristers representing his father and I was very concerned to hear of Jimmy Lai’s deteriorating medical situation. I urge the Prime Minister to meet his team to discuss what the British Government can do to effect his release.

Another example is the compelling evidence of the use of forced labour in energy supply chains in China, especially polysilicon. I do not believe our green energy transition should be built from solar panels built using forced labour. We must take a whole-of-industry approach, with robust safeguards against the import of solar panels when it cannot be shown that they are free from forced labour. In the long term, our country needs to become self-sufficient in our industrial supply chains, such as renewable technology production. I completely agree with my hon. Friend the Member for Stockton North (Chris McDonald) said about protecting UK domestic industries and jobs, which must be prioritised.

A grown-up relationship with China means believing that we should work with China on areas that do not impact national security and human rights, while also putting our foot down in areas that do. It will always be a highly complex bilateral relationship, with tricky trade-offs and tensions, and I fully accept that there is a role for pressing China extremely hard, as some in this Chamber have done. I am pleased to see the Government’s success so far in bringing stability and pragmatism to that relationship.