Chris Goddard and Philip Mitchell are both members of Lewes Conservative Political Forum.
2020 provided a reality check in relation to China: no longer was it enough to promise, as the Cameron and May administrations had done, that Britain was “open for business” and that unpleasant features of Chinese nationalism could be overlooked because of trade. The scaling back of Huawei technology by Johnson provided a foretaste of a harder-edged response to growing Chinese influence throughout the world coupled with a realisation that, while trade normalises relations, it does not cure aggression or safeguard human rights.
Three events in particular have bought that reality into sharp focus. First, the introduction of the Hong Kong security law as an excuse to snuff out the remnants of democracy in that beleaguered territory has made plain that China regards any interference in its “internal affairs” as illegitimate and indeed worthy of denunciation – so-called “wolf warrior diplomacy”.
Second, as Nus Ghani has recently pointed out in these pages, there is increasing evidence that China has committed genocide and crimes against humanity in its repression of the Uyghurs in Xinjiang, prompting the US already to take punitive action in the form of its Uyghur Human Rights Policy Act.
The UK’s response has so far been limited to outbursts of righteous indignation from the Foreign Secretary. Ghani has (unsuccessfully) proposed that the current Trade Bill includes a provision whereby trade with nations can be restrained by the courts if genocide is adjudged to have taken place.
Third we have the widely reported news that Ofcom has revoked the broadcasting licence of the CGTN – the overseas division of Chinese Central Television – on the grounds that, contrary to the conditions of its licence, CGTN is not an independent entity but is controlled by the Chinese Communist Party and echoes its political line (for instance on Hong Kong).
It’s ironical that this move emanates from a mere regulatory body rather than any grave political decision, and yet it is likely to cause the most damage in future relations. This is because China does not recognise that administrators can act independently of governments and a political motive is automatically attributed.
A crucial dilemma has thus arisen for UK policy makers: is it right to call out China for its alleged abuses, being prepared to countenance a period of diplomatic deep freeze of a sort currently existing with Putin’s Russia? Or do we have to accept that the Chinese are likely to respond actively to what they see as hostility, and likely damage the substantial trading relationship which the two countries currently enjoy?
Trade and Environment
As for UK-China trade, the UK imports £49 billion worth of Chinese goods while China imports from the UK £31 billion. While this is a substantial figure and the imbalance does not seem outrageous, it should be remembered that the population difference between the two countries means that the UK per capita amount is approximately £1,500 while for China it is only £25.
Ordinary consumers are not necessarily aware of this – and perhaps they don’t care – as although packaging will show the country of origin, there is no such requirement with online sales. At a time when the UK is urgently looking to improve its trading relationships with countries beyond the EU, is it sensible to risk this massive trade?
Also, if Britain is serious about net zero emissions, it must export pollution to manufacturing countries such as China to reach its targets. The choice is either to abandon those targets, unpalatable with COP26 imminent, or accept ever greater overseas dependence.
China has always needed overseas trade to sustain its double-digit annual growth but counterparties have become wary of sharp practices, such as appropriation of intellectual property and distortion of markets by selling at uneconomic prices. A current example is the sale unto the UK of MG electric cars. China now owns this former British brand and offers attractive models at prices with which other manufacturers could not reasonably compete.
Not only has it financed many infrastructure projects in developing counties with grants or loans at attractive rates, but China has increased its influence in organisations such as the UN and the WHO by agreeing to fund projects which increase its profile or directly benefit its Belt and Road programme .
This assertiveness has become increasingly political. The example of Hong Kong has already been given, for which the suppression of freedom in Tibet is the now-forgotten forerunner. Displays of military might in the South China Sea are of concern to its immediate neighbours. Australia and China are at serious loggerheads over various issues, with China openly faking pictures of Australian soldiers harming children in order to punish Canberra over trade embargo threats. There is no subtlety in its recent diplomacy.
China is a proud country and is replacing Russia as a superpower. No country including the UK can afford to treat it as a pariah state. Yet the continuance of trade offers opportunities for criticism and negotiation provided the West stands together to call out abuses. With its economy faltering, the CCP will arguably not want to fight on too many fronts. While the UN, WHO and WTO are unlikely to be effective vehicles for moderation, the UK can utilise its post-Brexit freedoms and bilateral trade alliances to provide support to countries who want to stand up to Beijing. What it cannot do is act alone, a paper tiger in a post-Imperial world.