UK 'set to exempt Chinese spies from national security law’

The prime minister is set to face a collision course with some of his own MPs for reportedly exempting China from the toughest tier of new UK security laws. Russia and Iran are expected to face the strictest scrutiny under the plans, but it’s understood people in the UK working for the Chinese state will not be placed into the same category.

The decision, if confirmed, will enhance accusations that the government is being soft on Beijing, amid fears the country poses a security threat to Britain. The Conservatives branded it “extraordinary and reckless”.

The decision centres on the Foreign Influence Registration Scheme (Firs), a register the government is working on, designed to track people working for hostile states in the UK. The scheme, established under the Tories, will require foreign agents to reveal who they are working for, what activity they have been directed to undertake, and when the arrangement was made. It will have two levels — political influence, for basic lobbying, and “enhanced”, for people from countries it’s feared could threaten UK safety interests.

Those in the enhanced category will have to reveal more information about who they work for. Sources told The i Paper that Russia and Iran will be included in the enhanced tier, but China will not. Shadow foreign secretary Priti Patel said: “This is an extraordinary and reckless decision by this Labour government to exempt China from the toughest security restrictions which exist to protect our country. “China continues to threaten our interests and the safety and security of our country.

“In a desperate rush to think China can solve the self-inflicted economic woes of his government, Starmer is putting Britain at risk." Last month, when implementation of Firs was delayed, Conservative former home secretary Suella Braverman pressed for China to be included in the enhanced tier.

The government’s relationship with China is complicated: the government is anxious to increase trade with the world’s largest economy. Chancellor Rachel Reeves said she was willing to have “uncomfortable conversations” with its Communist leaders — but she was heavily criticised for visiting the country earlier this month while the UK economy was in crisis.

Sir Keir Starmer has appointed as the Treasury’s new City minister Emma Reynolds, who formerly served as the treasurer for the APPG on China, used to be managing director at banking trade group TheCityUK, when she lobbied ministers to water down proposed restrictions on Chinese business activity.

Last month, sources told Bloomberg that Ms Reynolds had campaigned to keep China off the Firs enhanced tier of restrictions. Ministers have not announced the details of the new security scheme, but business and diplomatic sources told The i Paper they did not expect Beijing to face tighter tier restrictions.

MPs from all parties are expected to raise objections. It’s thought the government could carry out further consultation at a later date and potentially rethink China’s classification.

The Foreign Office is conducting an “audit” of UK relations with China, with a three-pronged approach of “cooperate, compete and challenge”. When the Conservatives unveiled the Firs plan, Ken McCallum, head of MI5, said it would make it harder and riskier to operate covertly in the UK for a foreign power make it harder for enemies to undermine UK democracy.

A Home Office spokesperson told The Independent: “It would not be appropriate or helpful to speculate about which countries might be specified on the enhanced tier. “It is the first duty of government to protect our national security. We will be laying the regulations bringing the scheme into force as soon as possible.”

British finance minister Rachel Reeves visited China earlier this month, a visit intended to revive high-level economic and financial talks that have been frozen since 2019. The Labour government, in power in Britain since July, has made improving ties with China one of its main foreign policy goals after a period under successive Conservative governments when relations plunged to their lowest level in decades.

Agencies