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The government is facing renewed calls to label China a threat after the arrest of a parliamentary researcher on suspicion of spying for the superpower.

Deputy Prime Minister Oliver Dowden was delivering a statement on the matter in the House of Commons.

Earlier in the afternoon, Speaker Sir Lindsay Hoyle warned MPs against going into details on the matter – or naming the suspect who was arrested – during the debate.

Politics latest: Deputy PM giving update on ‘China spy’ allegations

A slew of Conservative MPs – some of them sanctioned by China – shared their displeasure about the fact they were not told about the arrest of the researcher when it happened.

They, alongside MPs on opposition benches, called on the government to label China a threat to the UK.

Prime Minister Rishi Sunak also spoke in the Commons after meeting with China’s premier Li Qiang at the G20 over the weekend.

Mr Sunak said: “The sanctity of this place must be protected and the right of members to speak their minds without fear or sanction must be maintained.

“We will defend our democracy and our security – so I was emphatic with premier Li that actions which seek to undermine British democracy are completely unacceptable and will never be tolerated.”

Oliver Dowden
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Oliver Dowden said the government had been ‘clear-eyed’ about China

Mr Dowden repeated the government’s position laid out in the integrated review refresh earlier this year, that China was a “systemic challenge” to the UK.

Liz Truss, the former foreign secretary and former prime minister, labelled China as the “largest threat, both to the world and to the United Kingdom, for freedom and democracy.”

Sir Iain Duncan Smith, another ex-leader of the Conservative Party, said: “It’s appalling news that we have a potential cell operating in and around Westminster, an espionage cell, and I as a sanctioned individual alongside many of my colleagues are particularly perturbed by this particular news.”

He added: “The problem lies in the mess we’ve got into over what we define China as in respect to us. Are they a threat or are they not? If they are a threat, why don’t we call them a threat and take the relative action that is necessary to deal with them on that basis and sanction some people?”

Conservative MPs Tim Loughton, Theresa Villiers and Sir Bob Seely also called for the government to take more action.

Read more:
PM confronts China’s premier after arrest of parliament ‘spy’
Government has ‘no strategy’ to tackle China targeting of UK

How much difference is there between a challenge and a threat?


Rob Powell Political reporter

Rob Powell

Political correspondent

@robpowellnews

Quite a lot, according to several Conservative MPs who got up to call for a more robust approach to China in the Commons this afternoon.

Deputy Prime Minister Oliver Dowden did say the government was “clear about the threat that China poses” but the core position still appears to be that Beijing represents a “systemic challenge”.

That’s not hard enough for many on the backbenches who want China officially designated as a threat, sanctions imposed on individuals and the country barred from an artificial intelligence conference being held in the UK this autumn.

Such a change seems unlikely for now.

The Foreign Office has set out a clear policy of cautious engagement with Beijing, on the grounds of economic necessity and in the search for global solutions to problems like climate change and pandemics.

In a Commons session where any talk of the arrested individual was quickly shut down by the Speaker, one specific question connected to the case did come up.

Did Foreign Secretary James Cleverly raise the alleged Chinese spy with Beijing when he visited two weeks ago?

No, came the answer from Mr Dowden, who said while ministers regularly raise the broader issue of interference – they wouldn’t talk about specific cases, especially ones currently subject to a police investigation.

Mr Dowden conceded China was the “number one state-based threat” to the UK’s economic security.

The minister added the UK government had been “clear-eyed” about the threats China poses towards the UK, and was taking action to tackle them – such as banning Huawei from UK infrastructure and banning TikTok on government phones.

Sir Keir Starmer, who responded to Mr Sunak’s statement, pushed the government on whether Foreign Secretary James Cleverly knew about the arrests before he became the first foreign secretary to visit China in five years.

The visit took place in August, five months after the arrest took place.

Mr Sunak said: “I am sure he will appreciate that as there is an ongoing investigation, as you have also said Mr Speaker, I am limited in what I can say specifically.

“But I have been emphatically clear in our engagement with China that we will not accept any interference in our democracy and parliamentary system.”

Sir Iain asked Mr Dowden a similar question earlier, and was told by the minister that a running commentary could not be provided.

In a statement released by his lawyers, the arrested man said: “I feel forced to respond to the media accusations that I am a ‘Chinese spy’. It is wrong that I should be obliged to make any form of public comment on the misreporting that has taken place.

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“However, given what has been reported, it is vital that it is known that I am completely innocent. I have spent my career to date trying to educate others about the challenge and threats presented by the Chinese Communist Party.

“To do what has been claimed against me in extravagant news reporting would be against everything I stand for.”

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

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Crypto industry, trade unions clash over multi-trillion dollar retirement funds

A growing rift has emerged in Washington, D.C., between the cryptocurrency industry and labor unions as lawmakers debate whether to ease rules allowing cryptocurrencies in 401(k) retirement accounts.

The dispute centers on proposed market structure legislation that would allow retirement accounts to gain exposure to crypto, a move labor groups say could expose workers to speculative risk. In a letter sent on Wednesday to the US Senate Banking Committee, the American Federation of Teachers argued that cryptocurrencies are too volatile for pension and retirement savings, warning that workers could face significant losses.

The letter drew immediate pushback from crypto investors and industry figures. “The American Federation of Teachers has somehow developed the most logically incoherent, least educated take one could possibly author on the matter of crypto market structure regulation,” a crypto investor said on X. 

Retirement, Pensions
The AFT letter to Congress opposes regulatory changes that would allow 401(k) retirement accounts to hold alternative assets, including cryptocurrency. Source: CNBC

In response to the letter, Castle Island Ventures partner Sean Judge said the bill would improve oversight and reduce systemic risk, while enabling pension funds to access an asset class that has delivered strong long-term returns.

Consensys attorney Bill Hughes said the AFT’s opposition to the crypto market structure bill was politically motivated, accusing the group of acting as an extension of Democratic lawmakers.

Retirement, Pensions
Funds held in US retirement accounts by type of account plan. Source: ICI

Related: Atkins says SEC has ‘enough authority’ to drive crypto rules forward in 2026

Opposition to crypto in retirement and pension funds mounts

Proponents of allowing crypto in retirement portfolios, on the other hand, argue that it democratizes finance, while trade unions have voiced strong opposition to relaxing current regulations, claiming that crypto is too risky for traditional retirement plans.

“Unregulated, risky currencies and investments are not where we should put pensions and retirement savings. The wild, wild west is not what we need, whether it’s crypto, AI, or social media,” AFT president Randi Weingarten said on Thursday. 

The AFT represents 1.8 million teachers and educational professionals in the US and is one of the largest teachers’ unions in the country.

According to Better Markets, a nonprofit and nonpartisan advocacy organization, cryptocurrencies are too volatile for traditional retirement portfolios, and their high volatility can create time-horizon mismatches for pension investors seeking a predictable, low-volatility retirement plan.

Retirement, Pensions
Bitcoin and Ether volatility compared to other asset classes and stock indexes. Source: US Federal Reserve

In October, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) also wrote to Congress opposing provisions within the crypto market structure regulatory bill.

The AFL-CIO, the largest federation of trade unions in the US, wrote that cryptocurrencies are volatile and pose a systemic risk to pension funds and the broader financial system.

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