In U.K., China Is a Threat and a Coveted Trade Partner

Britain’s electronic surveillance agency devotes more resources to China than any other mission. The country’s foreign spy service has clandestine officers around the world to thwart the Chinese threat. The head of MI5, focused on domestic risks, said this month that Chinese spies threaten national security “every day.”

The message from Britain’s intelligence agencies has been consistent: China is a clear threat.

The message from the rest of the British government has been blurrier. This month, prosecutors dropped charges against two British men accused of spying on behalf of China. The case fell apart after the government would not confirm for legal purposes that China was an enemy or threat to national security.

Conservative lawmakers accused Prime Minister Keir Starmer’s government of abandoning the case over fears a trial would anger China and harm economic ties between the two countries, charges he rejected.

At the same time, British officials have been debating whether to allow China to build a massive new embassy near the Tower of London. Security officials worry the building will be a nest of spying. The government delayed a decision due last week about whether to allow construction.

Both issues highlight the trade-offs that Britain and its allies face navigating relations with China. Western officials want the economic benefits of trading with China, the world’s second-largest economy, yet must balance that desire with the security risks that China poses. China has aggressively spied on Britain and its allies, not only by sweeping up communications but also conducting more pernicious operations such as burrowing into the networks of dams and electrical grids.

The tension is acute in Britain, economically weakened in the decade since Brexit and struggling to attract investment and shore up domestic demand.