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Sir Keir Starmer has encouraged British businesses to embrace the opportunities of increasing trade with China, ahead of a decision on the contentious plan for a larger Chinese embassy in London.
In a key speech on foreign policy in London, the UK prime minister acknowledged that China “poses national security threats”, but said his government wanted to give companies “the confidence, clarity and support they need” to make deals with Beijing.
Starmer’s comments come after a period of turmoil in his government’s relationship with China, following outrage in Westminster over the collapse of a Chinese spying trial and over plans for the Chinese embassy, which will be decided on December 10.
It was reported last month that Starmer is likely to greenlight the embassy plan, though no final decision has been taken. He is also expected to travel to China next year, in what would be the first trip to Beijing by a UK prime minister since Theresa May in 2018.
The Labour government has faced criticism of being soft on China at a time when they are looking to boost trade, but ministers have insisted they will always put security first. Last month, MI5 alerted MPs that Beijing’s intelligence services were trying to recruit people who work in parliament.
But Starmer believes the government can find a “grown up” approach to doing business with one of the world’s top-two economies.
China “is a nation of immense scale, ambition and ingenuity”, Starmer said on Monday at the annual Guildhall speech. “At the same time it also poses national security threats to the UK.”
He criticised the previous government for overseeing a weakening relationship with China, which he called a “dereliction of duty”.
The UK did not have to treat engagement with China as a “binary choice”, Starmer said.
“For years we have blown hot and cold,” he added. “We had the golden age, which then flipped to an Ice Age.”
In areas such as defence, AI or critical national infrastructure the government would “always protect our security and our economic interests”, the prime minister said.
But there were other areas where British businesses could invest with confidence, he added.
“In areas like financial and professional services, creative industries, pharmaceuticals, luxury goods and more — great British success stories — the export opportunities are huge and we will back you to seize them,” Starmer said.
Last month, the Chinese embassy, responding to MI5’s warning to MPs, accused Britain of “fabrication and malicious slander” and advised the UK government “to stop going further down the wrong path of undermining China-UK relations”.
China’s proposed “mega” embassy, on the former site of the Royal Mint opposite the Tower of London, would be the largest in Europe.
Conservative politicians have criticised it as a spying hub for Beijing and concerns have also been raised over sensitive data cables that run underneath the site from the City of London.
The UK is also seeking to rebuild its old embassy in Beijing, but planning approval has been delayed.
Number 10 officials have said they cannot comment on the decision about China’s proposed new embassy, because it is formally part of a quasi-judicial process.
