MPs have warned that the government is making up its China policy as it goes, exposing the UK to economic and national security risks. The warning comes in a 102-page report published on Monday 2 November 2026 by the Commons Business, Innovation, Science and Trade Committee.

The committee said the government had failed to deliver the strategic, long-term and consistent approach to China it promised in 2024. Instead, it described the government's track record as characterised by reactivity, inconsistency and opacity.

Examples cited by the committee

The report pointed to the last-minute blocking of Chinese firm Ming Yang's planned wind turbine factory in Scotland, and the nationalisation of British Steel from Chinese ownership. It also criticised re-engagement with Beijing without a finalised audit or published strategy; an audit completed in June 2025 has never been published.

The committee warned of a tendency to prioritise diplomatic politeness over national security, leaving the UK exposed to what it called unquantified, unmanaged risk, including the transfer of sensitive data and technologies and dependence on Chinese supply chains.

What MPs recommend

The committee called for clear new rules, including designated red zones in the economy that should be off limits to Chinese trade and investment, and green zones where trade should be encouraged. It also recommended preparing a tariff regime to be deployed if China refuses to rebalance its economy, continues to subsidise industry unfairly, or fails to offer fully reciprocal market access.

Other recommendations include preventing sensitive data and technology transfers, securing supply chains, and banning imports made using forced labour. Chair Liam Byrne said businesses cannot plan when policy keeps being made up as it goes along.

Sources

East Renfrewshire News (PA report): Government is 'making up China policy as it goes', MPs have warned in new report
The Times: Muddled China policy hurts economy and national security, say MPs