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China should not be described as a “foe” or a “threat” but it should be regarded as a “challenge”, a cabinet minister has said – following allegations a Chinese spy infiltrated parliament.

Business Secretary Kemi Badenoch said the claims were an “extremely serious concern” but we “shouldn’t be using language that makes people scared”.

It comes after two men were arrested under the Official Secrets Act amid reports a parliamentary researcher spied for China.

The researcher, who is in his 20s, is understood to have had links to security minister Tom Tugendhat, foreign affairs committee chairwoman Alicia Kearns and other senior Tory MPs.

The incident has thrown a spotlight on the government’s stance towards China.

Prime Minister Rishi Sunak has sought to adopt a more diplomatic stance towards the country than some of the more hawkish members of his cabinet and party, who want China to be officially classified as a threat.

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Asked whether China should be described as a threat, Ms Badenoch told Sky News: “I would define it as a challenge.

“I define China as a challenge because certainly from my job as business secretary working on international trade in particular, we see at international level just how significant China is, impacting the economies of countries all around the world.

“I was at the G20 two weeks ago – there were significant difficulties between China and Japan. There were difficult conversations between China and India. So I think across the world, China is becoming a very, very significant challenge.”

Pressed on whether China should be described as a “friend or a foe”, she replied: “We certainly should not be describing China as a foe – but we can describe it as a challenge.

“I don’t think we should be careless in terms of how we speak about other countries when these sorts of things happen.”

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PM confronts China’s premier

The business secretary rejected suggestions the government was “putting our safety behind the possibility of trade deals”, saying: “Well first of all, we are certainly not doing any trade deals with China.”

She said the UK’s approach is “the same as our allies in the US, Canada, Australia” and the UK is “not doing anything that’s out of the ordinary”.

“Obviously, Chinese people are different from the Chinese government and it is important to be diplomatic,” she said.

“We shouldn’t be using language that makes people scared. We need to be giving them confidence, and I’m very confident in our security services and in the work that the government is doing on economic security and investment screening.”

Mr Sunak met Chinese premier Li Qiang, who is attending the G20 summit in India in place of President Xi Jinping, on the fringes of the gathering’s final session on Sunday morning, where he said he raised his “very strong concern” about interference with parliamentary democracy which was “obviously unacceptable”.

It was the “right approach” to talk face-to -face with China’s premier, he said.

“Where there are areas of disagreement… I’d rather be in the room directly expressing my concerns, and that’s what I did today.”

The arrests were made in March and first revealed by The Sunday Times. Officers from the Metropolitan Police’s Counter Terrorism Command, which oversees espionage-related offences, are investigating.

Ms Badenoch said it was “significant” the prime minister raised the issue with the Chinese premier this weekend.

“He spoke about his very serious concerns and that’s why it’s important to be able to have the engagement so that you can speak face-to-face and say exactly what it is that we think, in a way that will have an impact,” she added.

The Chinese embassy in London issued a statement yesterday in which it described this incident as “completely fabricated” and “nothing but a malicious slander”. It urged Britain’s lawmakers to “stop anti-China political manipulation”.

Read more:
How worried should we be about Chinese ‘spying’ in parliament?
James Cleverly defends first China trip by foreign secretary in five years as MPs call for openness on policy

Labour’s shadow home secretary, Yvette Cooper, claimed security services warned about the dangers of spying “some time ago”.

She pointed to the “damning” report from the security and intelligence committee in July which said the government had “no strategy” to deal with China.

“We think there has to be a comprehensive strategy towards the risks, the challenges, and the threats from other states to our national security,” she said.

Asked if she believed China was a friend or foe, she said: “Well, the relationship is clearly complex.

“There are serious issues around the human rights abuses in China. There are serious issues around their approach and their role across the world. And we also have this trading relationship, as we’ve seen the rise of China. We have to deal with that. But in particular, we have to make sure we protect our own national security. That has to come first.”

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No 10 decline to say if Palestine will be recognised with Hamas in power

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No 10 decline to say if Palestine will be recognised with Hamas in power

The prime minister’s spokesman has refused eight times to confirm whether recognition of Palestine could go ahead if Hamas remain in power and the hostages are not released. 

Keir Starmer’s spokesman was questioned by journalists for the first time since the announcement last week that the UK will formally recognise the state in September – unless Israel meets certain conditions including abiding by a ceasefire and increasing aid.

The policy has been criticised by the families of UK hostages, campaigners and some Labour MPs, who argue it would reward Hamas and say it should be conditional on the release of the remaining hostages.

A senior Hamas politician, Ghazi Hamad, speaking to Al Jazeera, said at the weekend that major nations’ decision to recognise a Palestinian state “is one of the fruits of 7 October”.

Gaza latest: Trump pressed to recognise Palestinian state

The PM’s spokesman said on Monday: “The PM is clear that on 7 October, Hamas committed the worst act of terror in Israel’s history. That horror has continued since then.

“As the foreign secretary said over the weekend, Hamas are rightly pariahs who can have no role in Gaza’s future, there is a diplomatic consensus on that. Hamas must immediately release all hostages and have no role in the governance of Gaza.”

But asked whether removing Hamas from power and releasing hostages were conditions for statehood, he said a decision on recognition would be made at the UN General Assembly meeting in September, based on “an assessment of how far the parties have met the steps we have set out. No one side will have veto on recognition through their actions or inactions.”

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Up to 300 children could be evacuated from Gaza and given NHS treatment in the UK. The plans are reportedly set to be announced within weeks.

He added: “Our focus is on the immediate situation on the ground, getting more aid in to end the suffering in Gaza and supporting a ceasefire and a long-term peace for Israelis and Palestinians based a two-state solution.”

Starmer, who recalled his cabinet for an emergency meeting last week before setting out the new position, is following the lead of French president Emmanuel Macron, who first pledged to move toward recognising Palestinian statehood in April.

Read more:
New US plan for Gaza starting to emerge
Hamas responds to disarmament reports

Canada has also backed recognition if conditions are met, including by the Palestinian Authority.

The prime minister had previously said he would recognise a state of Palestine as part of a contribution to a peace process.

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Efforts to bring Gazan children to the UK for urgent medical treatment are set to be accelerated under new government plans.

In his announcement last Tuesday, he said: “We need to see at least 500 trucks entering Gaza every day. But ultimately, the only way to bring this humanitarian crisis to an end is through a long-term settlement.

“So we are supporting the US, Egyptian and Qatari efforts to secure a vital ceasefire. That ceasefire must be sustainable and it must lead to a wider peace plan, which we are developing with our international partners.

“I’ve always said we will recognise a Palestinian state as a contribution to a proper peace process, at the moment of maximum impact for the two-state solution. With that solution now under threat, this is the moment to act.”

Adam Rose, a lawyer acting for British families of hostages in Gaza, has said: “Why would Hamas agree to a ceasefire if it knew that to do so would make British recognition of Palestine less likely?”

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Coinbase turns lobbying efforts to UK in scathing op-ed

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Coinbase turns lobbying efforts to UK in scathing op-ed

Coinbase turns lobbying efforts to UK in scathing op-ed

Former UK Chancellor and current Coinbase adviser George Osborne says the UK is falling behind in the cryptocurrency market, particularly when it comes to stablecoins.

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Nigel Farage dared me to walk in London after 9pm: Here’s my response

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Nigel Farage dared me to walk in London after 9pm: Here's my response

At a press conference today in which Reform UK announced the Tory police and crime commissioner for Leicestershire was joining their ranks, as well as former prison governor Vanessa Frake, I asked Nigel Farage a simple question.

But his answer wasn’t what I expected.

I asked the Reform UK leader if the six-week campaign on law and order, with the tagline “Britain is Lawless”, was in fact project fear scaring people into voting for his party.

He utterly rejected that claim and responded to me saying: “No, they are afraid. They are afraid. I dare you, I dare you to walk through the West End of London after 9 o’clock of an evening wearing jewellery. You wouldn’t do it. You know that I’m right. You wouldn’t do it.”

I am not afraid to walk in the West End of London after 9pm wearing jewellery.

I have done it many times before and will continue to do so… but perhaps that is because I do not own a Rolex.

However, just because Farage is wrong on that point, doesn’t mean he isn’t tapping into other legitimate fears across the country.

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Snatch theft does worry me, hence why I now have a phone case with a strap attached to it that I can put around my body.

And I worry about knife crime in my area and what the impact could be if I were to have children – on the weekend someone was stabbed to death a stone’s throw from my house.

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Farage ‘not mincing his words’

However, if we look at the statistics, it is invariably a more nuanced picture than Farage or social media might have us believe.

According to police reports, thefts from a person in London are almost five times the national average, and they’ve been going up since the pandemic.

And the Office for National Statistics (ONS) also notes that thefts outside of the home, eg phone snatching, has increased.

However, possession of weapons has fallen in London by 29% over the last three years.

And according to the ONS, crime in England and Wales is 30% lower than in 2015, and 76% lower than 1995.

And it is a similar picture for violent crime.

In short, am I right to be more worried that snatch theft and knife crime in London is increasing? Yes, and no.

But Nigel Farage is tapping into voters’ emotions – their feelings that the country is broken. It’s a picture the Conservative Party helped to create and the Labour Party happily painted to great effect during the general election campaign of 2024.

And the more politicians of all colours tell voters that “the system is broken”, the more voters might start to believe them.

That is what Nigel Farage is banking on.

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