Great Britain and China flags flying against the sunset

Table of contents

DOI: https://doi.org/10.58248/HS110 

Overview

The state of relations between the UK and China was a key focus of the last Parliament, with numerous select committee inquiries, debates, and parliamentary questions covering the subject.[1][2][3][4][5][6][7] This issue was identified as of ongoing importance by contributors to the horizon scan.

Prior to this period, the UK and China had experienced a largely cordial relationship with successive UK governments working toward closer engagement and cooperation.[8][9] However, UK concerns over China’s human rights record, actions in Hong Kong, and the threat of espionage in the UK, have impacted upon the relationship.[9][10][11] Competition between the US and China, and increased tensions in the South China Sea and the Taiwan Strait, were considered in the UK Government’s Integrated Security Review Refresh in March 2023. This stated that China under the Chinese Communist Party poses “an epoch-defining and systemic challenge.”[12]

Despite these challenges, significant opportunities remain for the relationship between the UK and China, including strong economic links and cooperation on the global stage.

Challenges and opportunities

There have been concerns over China’s human rights record, particularly following reports of human rights abuses against Uyghur Muslims in Xinjiang.[9][13] In 2021, the Foreign Secretary said that the treatment of the Uyghur Muslims was “one of the worst human rights crises of our time”.[14] The Integrated Review Refresh 2023 stated that China is “challenging the centrality of human rights and freedoms in the UN system”.[12]

Hong Kong was a British colony until 1997 when it returned to Chinese rule following the Joint Declaration agreement.[15] The Declaration promoted Hong Kong as being “one country, two systems”, under which it would enjoy a “high degree of autonomy”.[15] In 2020, China introduced the Hong Kong National Security Law following protests in 2019.[16][17][18] The UK Government said that the 2020 Law was a “clear and serious violation” of the Joint Declaration and criticised the mass arrests of leading activists who were involved in the pro-democracy protest movements in Hong Kong, including British citizens.[19][20]

A further challenge arose when the UK Government raised concerns over the threat of espionage and influence by China in the UK.[21][22] In April 2024, two men, one a UK parliamentary researcher, were charged with spying for China under Official Secrets Act.[23] In May, the Metropolitan Police announced it had charged three men under the National Security Act with “assisting the Hong Kong intelligence service and foreign interference”.[24][25] In December 2024, a Special Immigration Appeals Tribunal upheld a Home Office order banning a Chinese businessman and alleged spy from the UK on national security grounds.[26] China has labelled the allegations relating to the April 2024 charges as “malicious slander”.[24]

Recent years have seen increased competition between the US and China.[27] For example, under the Trump Administration from 2017 to 2021, relations were strained with a ‘trade war’ following US tariffs and other trade barriers.[28] Relations saw further fragility under the Biden Administration from 2021-2025, particularly with regards to Taiwan and the technology sector.[29] In February 2025, President Trump announced 25% tariffs on all steel and aluminium imports, including from China.[30] [31]

The South China Sea has seen competing sovereignty claims, including from China.[32] In 2023, the Foreign Affairs Committee reported that China had “adopted a more assertive and aggressive approach, challenging the Rules-Based International Order and projecting its military power into the South China Sea”.[5] The Permanent Court of Arbitration ruled against China’s claims in 2016.[33] In 2023, the think tank RUSI said recent incidents involving the US, China, and the Philippines in the South China Sea may suggest an escalation, with China’s action having “teetered on the edge of the direct use of force”.[34] Conflict in the South China Sea may include the UK’s close allies and have implications for global economic stability.[5]

China sees the island of Taiwan as a breakaway province that should be integrated within the People’s Republic of China, whilst many Taiwanese, including recently elected President Lai Ching-te, have sought the island’s independence and a separate Taiwanese identity.[35][36] The Defence Committee stated in October 2023 that “it appears that China intends to confront Taiwan, whether by direct military action or ‘grey zone’ attacks” with conflict over Taiwan “potentially only years away”.[37] The Committee recommended that the UK Government plan for a UK response should conflict arise in Taiwan, and prepare for a range of actions by China.[9] The Foreign Affairs Committee suggested that conflict over Taiwan would disrupt vital sea routes connecting the UK to major trading partners, and possibly limit access to important technologies such as semiconductors.[5]

In the 12 months to March 2024, China was the UK’s fifth-largest trading partner.[16] The UK ran a £25 billion trade deficit.[38] In 2024, Dr Yu Jie, senior research fellow at Chatham House, stated that many stakeholders in London, including the government and FTSE-100 companies, support a closer business relationship with China.[11] She also noted that isolation from China may harm UK prosperity.[11]

In 2023, the Intelligence and Security Committee said that the UK is of significant interest for Chinese investment, citing examples in academia, nuclear energy and telecommunications.[39] Whilst the Intelligence and Security Committee report recognised some of the risks involved in Chinese investment, particularly into sensitive technologies, it said that the UK Government will “continue to court investment from China” and acknowledged that “the majority of Chinese investment in the UK is almost certainly in non-sensitive sectors.”[39] The 2023 UK Government Integrated Review Refresh stated that China is “highly advanced in several industrial, scientific and technological fields, and plays a vital role in many global supply chains of importance to the UK”.[12]

There may be an opportunity for the UK and China to cooperate to solve global problems, such as climate change. The UK and China are permanent members of the UN Security Council, and the UK Government’s 2023 Integrated Review Refresh stated that the UK should create open, constructive, predictable and stable relations that reflect China’s importance in world affairs.[12] The Review stated it was important, when possible, to cooperate on global challenges including climate and global health.[12]

Key uncertainties/unknowns

Prior to the UK Government’s 2023 Integrated Review Refresh, the International Relations and Defence Committee inquiry in September 2021 said there was a “strategic void” in the UK’s policy for trade and security with China, with concern over a “lack of consistent and coherent policy on China”.[40]

Following the Refresh in 2023, the Foreign Affairs Committee criticised the government for not publishing a comprehensive policy on China, and for the secrecy around the Foreign, Commonwealth and Development Office China strategy, with it not being widely available across government due to its classification.5 One commentator to the horizon scan concluded that it was difficult to assess the effectiveness of the strategy due to its secrecy.[41] They argued that the UK still does not have a public China strategy, making a ‘whole-of-society’ approach to China challenging.[41]

Key questions for Parliament

  • Is the UK Government’s current strategy towards China adequate? What is the current state of the UK Government’s audit on China?[42]
  • Should Parliament press the government for a public China policy, as in other countries such as Germany?
  • How should the government challenge China’s actions in Hong Kong and express its concerns over human rights?
  • How should the government respond to allegations of espionage? How does the government secure against espionage in the UK?
  • Should the government continue to closely align itself with the US to the potential detriment of the UK-China relationship?
  • How should the government respond to tensions in the South China Sea, and the potential for conflict in the region?
  • How should the government define its relationship with Taiwan? What should the UK do if Taiwan is invaded?
  • How should the UK-China economic relationship be developed? Where should Chinese investment be welcomed and where should it be restricted?
  • How can the UK work with China on the global stage on issues such as climate change?

Related documents

References

[1] International Relations and Defence Committee (2021). The UK and China’s security and trade relationship: A strategic void.

[2] Intelligence and Security Committee of Parliament (2022). China.

[3] Foreign Affairs Committee (2022). Refreshing our approach? Updating the Integrated Review.

[4] House of Lords Debate (2023). China.

[5] House of Commons Foreign Affairs Committee (2023). Tilting horizons: the Integrated Review and the Indo-Pacific.

[6] House of Commons Debate Defence Committee (2023). UK Defence and the Indo-Pacific.

[7] House of Commons Debate (2024). China.

[8] House of Commons Library (2024). UK Government policy on China.

[9] Cainey, A. (2023). Six Principles for a More Dynamic and Effective UK–China Strategy. RUSI.

[10] House of Commons Library (2024). UK Government policy on China.

[11] Jie, Y. (2024). The UK’s next government must redefine its confused relationship with China. Chatham House.

[12] HM Government (2023). Integrated Review Refresh 2023: Responding to a more contested and volatile world.

[13] House of Commons Library (2021). China and the Xinjiang Uighur Autonomous Region.

[14] House of Commons Debate (2021). Human Rights Update.

[15] House of Commons Library (2021). Hong Kong: National Security Law and recent events.

[16] Cainey, A. (2023). Six Principles for a More Dynamic and Effective UK–China Strategy. RUSI.

[17] Basic Law (2021). Chapter 2 – Relationship between the Central Authorities and the Hong Kong Special Administrative Region.

[18] BBC News (2024). Hong Kong national security law: What is it and is it worrying?

[19] House of Commons Debate (2020). China.

[20] Foreign Commonwealth and Development Office (2023). Hong Kong National Security Law arrest warrants: Foreign Secretary’s statement.

[21] MI5 (2023). Joint address by MI5 and FBI Heads.

[22] House of Commons Library (2024). UK Government policy on China.

[23] Hawkins, A. (2024). Two men charged with spying for China appear in Westminster Court. The Guardian.

[24] Gillett, F. and Comerford, R. (2024). Two men charged with spying for China under Official Secrets Act. BBC News.

[25] Comerford, R. (2024). Three charged with aiding Hong Kong intelligence service. BBC News.

[26] Mao, F. (2024). Yang Tengbo: Who is alleged Chinese spy linked to Prince Andrew? BBC News.

[27] US Government Accountability Office (2024). U.S. – China Relations.

[28] Swanson, A. (2018). Trump’s Trade War with China is Officially Underway. New York Times.

[29] Jia, Q. (2024). US-China’s relationship’s fragile stability shows fractures in 2024. East Asia Forum.

[30] Politi, J. (2025). Donald Trump to impose 25% tariffs on steel and aluminium imports. Financial Times.

[31] Hurlburt, H. (2024). What the US wants from the next UK government’s foreign policy. Chatham House.

[32] BBC News (2023). What is the South China Sea dispute?

[33] Graham, E. (2016). The Hague Tribunal’s South China Sea Ruling: Empty Provocation or Slow-Burning Influence? Council of Councils

[34] Balletta, R. (2023). Is the South China Sea Warming Up, or is it Just Business as Usual?. RUSI.

[35] BBC News (2024). China and Taiwan: A really simple guide.

[36] Sergeant, G. (2024) The Taiwanese Election: Implications for the UK. British Foreign Policy Group.

[37] House of Commons Defence Committee (2023). UK Defence and the Indo-Pacific.

[38] Department for Business and Trade (2025). Trade and investment core statistics book.

[39] Intelligence and Security Committee of Parliament (2022). China.

[40] House of Lords International Relations and Defence Committee (2021). The UK and China’s security and trade relationship: A strategic void.

[41] Aspinall, E. (2024). One Year On: How Has the Integrated Review Refresh Held Up? British Foreign Policy Group.

[42] Yeh, A. (2024). In the UK, Labor’s China Audit Is Fast Becoming a Post-Mortem.

Photo by evris via Adobe Stock

Horizon scan 2024

Emerging policy issues for the next five years.