Contribution
My Lords, these Benches believe the Government should engage internationally, and the Prime Minister likewise, to operate with allies and competitors alike. But when it comes to competitors who have been proven to also be adversaries and security risks, that engagement, if transactional, must actively de-risk.
On the Chinese risk to our economy and Parliament, and of industrial espionage, the relationship did not start when this Government took office. Indeed, part of the task should now be to try to remove some of China’s enhanced ability to operate that was in place under the previous Government. If the Government are playing a hand of cards badly now, the entire pack had been given previously to Beijing. We had the biggest trade deficit with China of any country in the history of our trade, peaking under Liz Truss at a trade deficit of over £50 billion. That meant our trading relationship was so out of balance that our ability to lever in any transactions was greatly reduced. I understand if the Government are seeking to reset the relationship, perhaps without going back to the “golden era” that George Osborne heralded in 2015, but a realistic one should ensure that we de-risk our relationship with China. Part of that would be ensuring that those who live in this country are not threatened by another country and do not have bounties placed on them. Did the Prime Minister state to President Xi that putting a bounty on anyone in this country is both utterly unacceptable and should be criminalised? Did we get an assurance that they will be lifted and never put in place again? Diplomacy is good; however, actions on this are necessary.
As we heard, we have been warned by MI5 of commercial espionage by China on an industrial scale. One of the key areas is our education sector, so can the Leader of the House be clear that we are confident of our intellectual property rights in any new relationship with China going forward? I read with a degree of concern that we are starting the process of a service trade agreement feasibility study. I asked the Minister for Development about this, highlighting that the Labour Party and the Liberal Democrats were as one before the last general election in seeking human rights clauses in trading agreements. Can the Leader of the House confirm that, if we are to have any service trade agreement with China, there will be human rights clauses within it and clear intellectual property protections?
On the embassy, there have been reports that the Prime Minister’s visit was not confirmed unless and until the embassy was approved. Ministers have said that only material planning issues were considered. Can the Leader of the House be clear and deny that there was any diplomatic communication with Beijing about the embassy?
If there is one element we have seen recently in Beijing’s purge of the military, it is the more belligerent tone on the regional areas of concern. It was a great pleasure this afternoon to meet with one of our Taiwanese sister party’s MPs to discuss the enhanced concern in Taiwan about that belligerent tone. The Prime Minister said in the House of Commons that he had raised the issue of Taiwan. Can the Leader of the House outline a little more what we raised? This is an opportunity to enhance our trading relationship not only with Beijing but with Taiwan, as being a friend of Taiwan does not mean being an enemy of China. When it comes to the key sectors of semi-conductors, technology and educational research, Taiwan is a trusted partner with strong institutions, the rule of law and human rights—and it is a democracy. Therefore, our relationship should be enhanced, but not at the cost of the relationship with China. Did President Xi seek to put pressure on the UK to diminish our relationship with Taiwan? That would be a very retrograde step.
On Japan, the situation is very positive. Our relationship is strong and can be enhanced, and I welcome the Government’s moves to do so. The Leader of the Opposition mentioned the Global Combat Air Programme; more information on timing and costs would be most helpful. Will the defence investment plan reflect the Tempest programme and the practical arrangements?
Finally, on whisky, for which both the noble Lord and I have a fondness, I agree that the situation is positive. Any deal that enhances the Scotch whisky industry is a good one. I remind noble Lords that, while it is beneficial that Beijing tariffs will be reduced, our most profitable and valuable malt whisky market in the world is Taiwan, and that should be a lesson for us.