MPs say UK China policy is improvised

A parliamentary report issued in November 2026 concluded that the UK is formulating its policy on China on the fly. The Commons business, innovation, science and trade select committee stated that the government has failed to create a coherent strategy since 2024. This lack of direction leaves the nation at risk of having its diplomatic stance dictated by either Washington or Beijing.

Liam Byrne, the Labour MP and chair of the committee, argued that the current approach endangers British business relationships with the European Union. He warned that the UK faces the risk of being cut off from large manufacturing contracts. The report noted that the government has been unable to deliver commercial opportunities to British firms while simultaneously managing increasing, unquantified risks in its relations with China.

The committee highlighted that the UK has suffered from a decade of limited engagement with Beijing. Prime Minister Keir Starmer made the first official visit in January 2026, a trip intended to end a diplomatic ice age. Since the last visit by Theresa May in 2018, China has experienced an export boom. This surge has fueled fears of deindustrialisation in the West and deepened concerns regarding cyber espionage and national security.

Byrne criticized the government for missing opportunities and leaving decisions until the last minute. He stated that British businesses cannot plan for the future when policy changes unpredictably. The report cited the March decision to block the Chinese firm Ming Yang from building a £1.5bn wind energy plant in Scotland. That project had been in negotiation for years before being halted due to unspecified security risks.

Scottish First Minister John Swinney has asked Deputy Prime Minister Andy Burnham to reconsider Starmer’s decision on the wind farm. The committee described the handling of this project, along with the emergency takeover of British Steel from its Chinese owners, as reactive, inconsistent, and opaque. The report found that these actions demonstrate a pattern of poor planning and lack of transparency.

The committee recommended that the government create clear new rules for trade. It suggested designating a red zone for industries where Chinese investment should be off-limits and a green zone where trade should be encouraged. Byrne urged the government to consider dynamic alignment with the EU, including potential tariffs on electric vehicles. He described this as the price of securing British firms a place in the EU’s Made in Europe project.

The EU has already imposed tariffs on Chinese electric vehicles and capped imports of hybrid cars. Brussels is now considering a Franco-German proposal for a kill switch that would block imports if China weaponises trade. China recently restricted exports of rare-earth minerals and chips to test this dynamic. The report noted that UK partners are moving faster and further in their protections than the UK government.

China is currently on track to surpass its record trade surplus of $1.19tn with the rest of the world. Its latest five-year plan, covering 2026 to 2030, prioritises the strategic expansion of high-value green exports. These include electric vehicles, batteries, wind turbines, hydrogen, and solar panels. Business Secretary Jonathan Reynolds said he will make a decision on aligning with EU tariffs in the best interests of the UK.