Labour is under pressure to toughen its stance on China in the wake of the scandal of the alleged spy who befriended Prince Andrew.
The Government was urged on Monday to put the Communist superpower on a long-delayed list of countries that pose the biggest national security risks to the UK.
Ministers were told that even MI5 believes China should be placed on the ‘enhanced’ tier of the Foreign Influence Registration Scheme (FIRS), which compels people working for foreign powers to declare their lobbying.
However there are fears that major British businesses are trying to block the move as damaging to Chinese investment, and it could be resisted by Labour as Sir Keir Starmer attempts to improve relations with Beijing.
Former Security Minister Tom Tugendhat welcomed the belated introduction of FIRS next year but told the Commons: ‘The real question is whether it’s worth having and the advice from MI5 was very clear: if China isn’t in the enhanced tier, it’s not worth having.’
He asked: ‘Will China be in that tier?’
His Labour successor Dan Jarvis replied: ‘We’re looking very carefully, very closely, working with colleagues across Government, to look at how we can best structure the scheme.’
Ex Tory leader Sir Iain Duncan Smith, who secured an Urgent Question on the extent of Chinese operations in the UK, also called for China to be placed in the enhanced tier immediately.
Alleged Chinese spy Yang Tengbo with former prime minister Theresa May
Yang with former Tory PM David Cameron and his wife Samantha
President Xi Jinping. MI5 believes China should be placed on the ‘enhanced’ tier of the Foreign Influence Registration Scheme (FIRS)
He asked: ‘Will the Government commit to putting China now in the enhanced tier of the Foreign Influence Registration Scheme, and will they do it now? No more delay. There is no need for delay.’
Leading China hawk Sir Iain told the Commons that the alleged spy with close links to the Duke of York, referred to as H6 in court but named yesterday as Yang Tengbo, was ‘in fact not a lone wolf’.
The businessman was said to be one of ‘some 40,000 members’ of the United Front Work Department (UFWD) – a Chinese intelligence and propaganda arm – many of whom had ‘penetrated every sector of the UK economy, spying, stealing intellectual property, influencing and shaping our institutions’.
Sir Iain said a report by the Inter-Parliamentary Alliance on China he chairs had found Mr Yang was ‘well known’ as a member of the UFWD and was also ‘known to others who are already now deep in the political establishment’.
He asked: ‘How was it that somebody who was known to the security forces was allowed to get so close to a member of the Royal family without proper scrutiny exposing them?’
Tengbo pictured sixth from right at a Pitch@Palace investment event in January 2019
Yang Tengbo was named today as the Chinese businessman with links to Prince Andrew
MI5 chief Ken McCallum. MI5 believes China should be placed on the enhanced tier, which compels people working for foreign powers to declare their lobbying
Security Minister Mr Jarvis revealed that regulations governing FIRS will be published in the New Year and the scheme will be up and running by the summer.
‘Work is under way to identify which foreign powers will be placed on the enhanced tier that will be based on robust security and intelligence analysis, the Home Secretary and I plan to begin setting up the Government’s approach to the use of the enhanced tier in due course,’ he said.
Labour also came under fire over its new approach to dealing with China, with Sir Keir last month becoming the first Prime Minister to hold face-to-face talks with President Xi Jinping since 2018.
Shadow Home Secretary Chris Philp asked the Security Minister to ‘review the wisdom of the Government’s approach to China’ in the light of the spying revelations.
‘I think given what we’ve learned and what we know, these very close relations that the Prime Minister is apparently attempting may not be wise, and the rather sycophantic tone the Prime Minister took with President Xi at the G20 a few weeks ago may not be very wise in light of what we now know.’
Tengbo invested in a fashion and soft furnishings company with the late former chair of both the UK Atomic Energy Authority and the Institute of Directors, Lady Barbara Judge
Former security minister Tom Tugendhat welcomed the belated introduction of FIRS but questioned if China would be placed in that tier
But Mr Jarvis pointed out that former Tory PM David Cameron had enjoyed an even friendlier meeting with the Chinese leader, replying: ‘In terms of the approach to China, I don’t agree with his characterisation of the Prime Minister’s recent meeting and I would just say very gently to him, at least he didn’t take him to the pub for a pint.’
Earlier Sir Keir himself had admitted he was worried about the ‘challenge’ posed by China but doubled down on his approach of ‘engagement’ and co-operation.
Speaking on a visit to Norway, the PM would not comment on any conversations he may have had with the royal family about the spy case but went on: ‘Of course we are concerned about the challenge that China poses.’
He added: ‘Our approach is one of engagement, of co-operating where we need to co-operate, particularly on issues like climate change, to challenge where we must and where we should, particularly on issues like human rights and to compete when it comes to trade. That’s the strategic approach that we have set out as a UK Government.’