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The Conservatives reportedly dropped two potential candidates to become MPs after MI5 warned that they could be spies for China.

The security service contacted the Tories last year and in 2021 advising the pair should not be included on the central list of candidates, according to The Times.

The newspaper reported the pair had linked to the United Front Work Department (UFWD) – China’s main agency for shaping public opinion.

It cited an unnamed source as saying: “It was made very clear that they posed a risk.

“They were subsequently blocked from the candidates list. They weren’t told why.”

A Conservative Party spokesman said: “When we receive credible information regarding security concerns over potential candidates we act upon them.”

The news comes in the wake of a parliamentary researcher arrested over allegations of spying for Beijing.

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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.

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China spy tensions in Westminster

In a statement released by his lawyers, the man – who they did not name – said he was “completely innocent” saying he spent his career “trying to educate others about the challenge and threats presented by the Chinese Communist Party”.

The man was arrested in Edinburgh on 13 March, Scotland Yard said.

The Sunday Times revealed that another man, who is in his 30s, was also arrested in Oxfordshire on the same day.

Both were held on suspicion of offences under Section 1 of the Official Secrets Act 1911, which punishes offences that are said to be “prejudicial to the safety or interests of the state”.

On Monday afternoon, Commons Speaker Sir Lindsay Hoyle reassured MPs that the House “follows the same vetting procedures as the government” and parliamentary security “is working closely and effectively with other relevant authorities” – and keeping arrangements under review.

Sir Lindsay said a small number of people were briefed about the arrest “on a strictly confidential basis” – and warned members against prejudicing future prosecutions by discussing the matter in the House.

He said the pair were bailed until early in October.

Read more:
Lack of cyber security experts in Whitehall should ‘send chill down government’s spine’

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PM on China: ‘We will defend our democracy’

Their arrests led to Rishi Sunak confronting Chinese premier Li Qiang at the G20 summit in India on Sunday over “unacceptable” interference in democracy.

The incident has also thrown a spotlight on the government’s stance towards China and raised questions about whether it should adopt a tougher approach.

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Political Traitors: Who can you trust?

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Political Traitors: Who can you trust?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Sam reveals there might be some Traitors-style plotting going on behind the scenes in government – but from who? And how might Sir Keir Starmer see off this challenge?

Budget speculation continues, and specifically – who is and is not a “working person”? And, should it occur, what would the consequences be of breaking a manifesto commitment? How perilous a moment for Starmer could this be?

And after the BBC’s director general and CEO of news resign, what does Starmer now say about the organisation? And who will come next in the top BBC job?

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

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Stablecoin demand is growing, and it can push down interest rates: Fed’s Miran

A growing demand for US dollar-tied crypto stablecoins could help push down the interest rate, says US Federal Reserve Governor Stephen Miran.

The Donald Trump-appointed Miran told the BCVC summit in New York on Friday that the dollar-pegged crypto tokens could be “putting downward pressure” on the neutral rate, or r-star, that doesn’t stimulate or impede the economy.

If the neutral rate drops, then the central bank would also react by dropping its interest rate, he said.

The total current market cap of all stablecoins sits at $310.7 million according to CoinGecko data, and Miran suggested that Fed research found the market could grow to up to $3 trillion in value in the next five years.

Stephen Miran speaking at a conference in New York on Friday. Source: BCVC

“My thesis is that stablecoins are already increasing demand for US Treasury bills and other dollar-denominated liquid assets by purchasers outside the United States and that this demand will continue growing,” Miran said.

“Stablecoins may become a multitrillion-dollar elephant in the room for central bankers.”