A British parliamentary committee called for defined boundaries governing trade and investment with China, arguing that ministers had left businesses facing unpredictable decisions. Its recommendations include identifying protected sectors and preparing measures against unfair competition. The proposals sit alongside recognition of commercial opportunities in China and concern that changing European trade rules could leave British firms outside important industrial projects.
A British parliamentary committee criticised the government’s China policy on Monday, saying inconsistent decisions had increased risks and made planning harder for businesses. The committee, chaired by Liam Byrne, called for a clearer approach to economic relations and national security.[1], [2]
The committee proposed identifying sectors where Chinese trade and investment should be encouraged and sectors that should remain closed. Its chair, Liam Byrne, argued that Britain should shape its own relationship rather than let Washington or Beijing do so. The committee said a promise of consistency made in 2024 had not been delivered.[1]
Among its examples was the last-minute decision in March to block a proposed Scottish wind-energy factory by Chinese company Ming Yang on security grounds. It also criticised the emergency takeover of British Steel from its Chinese owners as reactive and unpredictable. Scottish First Minister John Swinney has sought reconsideration of the Ming Yang decision.[1]
The committee recognised opportunities for British companies in China and consumer gains from inexpensive imports. They nevertheless recommended preparing defences against unfair competition, including possible electric-vehicle tariffs. Byrne suggested considering alignment with some EU trade measures to gain access to its Made in Europe industrial programme. The government had not adopted that suggestion; Business Secretary Jonathan Reynolds has said vehicle-tariff decisions would follow British interests.[1]
