Part of Jiang’s job as “Overseas Chinese Affairs Counsellor” is to go to as many “Overseas Chinese” events as possible — from sports prize ceremonies and cultural evenings to business networking meet-ups and academic conferences. At these events, Jiang can network with and offer business opportunities to all manner of people. The British Chinese businessman at the centre of the “Chinese overseas police stations” furore openly discussed the UFWD’s assistance for “Overseas Chinese” entrepreneurs in an online interview with Chinese state media.
As well as micro-managing Chinese civil society outside of China, CCP surveillance also targets Westerners. UFWD cadres tend to zoom in on an influential British person or group who appear sympathetic to China — and then seduce them with promises of funding, prestige, paid work, and useful connections. This form of “soft espionage” targets business, research, public bodies, culture, industry, and politics, shaping narratives and gathering information.
The complexity of this holistic approach partly explains why British politicians disagree so much over how to define the threat China poses. The Government’s “Integrated Review of Security, Defence, Development and Foreign Policy”, published in 2021, called China “the biggest state-based threat to the UK’s economic security”, “an increasingly important partner in tackling global challenges like pandemic preparedness, biodiversity and climate change”, and more simply as a “systemic competitor”. A later version of the review called China an “epoch-defining and systemic challenge” — hence Sunak’s recital.
Many have since lined up to criticise this nauseating pick-and-mix approach, calling for China to be labelled a “threat”. But the symbolic discussion about rhetoric has also morphed into a concrete one about policy. The Government is currently drawing up plans for a formal registry of foreign influence agents. This could classify China as a “threat” in such a way that would affect the “grey-zone” activities of Lee and Bates and their ilk.
Whatever form the registry takes, it is unlikely to be a panacea. The Australian and American versions are deeply flawed. In Australia’s case, the public register introduced in 2018 was at one point spammed by former PM Kevin Rudd in an act of protest. In the US, there are unfeasibly few China-related entries, and the system functions more than anything as a way of prosecuting those who fail to register, as in the case of individuals associated with one of China’s “overseas police service stations”.
The UK government is currently consulting over exactly how the register should work, with unenthusiastic parties, such as China-facing consultancies, asked to share their concerns. Businesses have also been given the chance to state objections regarding separate powers, legislated for in 2021, that enable the Government to scrutinise investments by Chinese entities in sensitive industries. There thus remain doubts about the “strong and robust steps” Sunak referred to in the Commons — especially since there has long been a sense that big business, hooked on China’s huge market, continues to pull the Government back.
The response of the CCP-sceptic lobby to this dynamic has been to cast doing business with China as a “risk”, and to brand moving investments out of China — or “de-risking” — as a means of protecting future balance sheets. Key to this argument have been tensions over Taiwan. If China invades, so the story goes, and if the US sanctions China, then your company will pay for not “de-risking”.
The conversation about British “de-risking” ought to be fraught. Between 2012 and 2022, China was the UK’s seventh-fastest growing export market — a significant statistic given that the six countries ahead of China were all smaller geographically than England (North Macedonia, Panama, Luxembourg, Lithuania, Switzerland, Gibraltar). Most important, however, is the fact that the UK’s bloated financial sector is massively exposed to China, by some metrics more than any other Western country.
In October, UK banks held secretive meetings about this exposure and drew up an overview that they shared with Western governments. The UK’s largest bank, HSBC, is in a particularly tight spot following attempts by a Chinese shareholder — seen off for now — to split the bank in two, with its profitable Asian business going to a theoretical China-headquartered daughter firm. The coup attempt was dealt with partly by reference from executives to healthy profits. But given that nearly half of the bank’s profits are made in China, is there any way HSBC can perform an elegant “de-risking”? Probably not, which means that if the “Taiwan risk story” comes true, the UK will suffer an exceptional hit.
With Britain facing such towering risks and diplomatic sensitivities, good judgement is required. Lost amid the outpouring of disdain for Cameron’s lobbying for Beijing is the real scandal: our new Foreign Secretary’s “epoch-defining” record of poor judgement on China.
The key is 2013. That year, Xi sealed his position as China’s undisputed leader by releasing a communique, Document Number Nine, which stated that China was being infiltrated by “Western anti-China forces” posing a threat to the existence of the CCP, and that an aggressive counter-offensive was required. Free media, free speech, academic freedom, economic liberalism, independence movements are all bad, per Document Number Nine, and must be obliterated within China.
This was the year that Cameron chose to launch an unprecedented period of UK-China cooperation. As British civil servants, university administrators, and business executives began to devise ways to make sure Britain became China’s “best friend in the West”, CCP cadres and officials executed Xi’s aggressive counterattack.
All the while, the CCP worked hard to propagate the image of a friendly Xi, peaceful and productive. Pumping money into academic institutions and the media helped (The Telegraph, The Financial Times and The Economist have all been paid to publish CCP propaganda). This was Xi the eco-warrior, the anti-corruption crusader, the defender of globalisation. Above all, this Xi was nothing to be feared. As he told the United Nations in 2017: “For several millennia, peace has been in the blood of us Chinese and a part of our DNA.”
Document Number Nine was largely ignored in the West, but it set the tone for a transformation in Chinese society: the implementation of Xi Jinping’s personality cult, the securitisation of society, a military build-up, political purges, the neutralisation of Hong Kong, the intensification of ethnic cleansing in China’s colonies of Tibet and Xinjiang, a revolution in “Overseas Chinese affairs” work, territorial clashes with China’s Indian and Bhutanese neighbours, support for Russia’s invasion of Ukraine, and more assertive incursions against Taiwan and the coastal waters of the Philippines, Malaysia, Brunei and Vietnam.
Taken together, these policies make the character of Xi and his regime clear. The writing is on the wall. Yet, even now, we have only half woken up to it. Some still see Xi as peaceful, at worst merely a committed and effective “CEO China” who has amassed power “without bloodshed”, as one prominent British professor, Kerry Brown, wishes us to believe.
This is not to say that our politicians and diplomats should go out and insult China or commit to defending Taiwan or the Philippines. Nor is it to say that it is Britain’s job to challenge China on the world stage, or to follow the United States in whatever Pacific tangle it might find itself in. It is just that whatever else Britain’s China policy does, it must never again make Cameron’s mistake of taking the CCP at its word. It must guard first and foremost against the illusions that would incapacitate us.
The Romans said “Fas est et ab hoste doceri” — right it is to learn, even from the enemy. Whether or not the UK government chooses to designate the CCP as an “enemy”, we should aspire to learn from one of its favourite slogans “shishi qiushi” — seek truth from facts.
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The views expressed here are personal, not those of UKCT.
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