Parts of Chinese state could be classed as ‘enhanced’ threats alongside Russia as ministers fear Beijing-linked firm ‘was ready to sabotage British Steel’

By JAMES TAPSFIELD, POLITICAL EDITOR FOR MAILONLINE

Published: 09:12 BST, 14 April 2025 | Updated: 09:19 BST, 14 April 2025

Parts of the Chinese state could be classed as an ‘enhanced’ threat by the government amid a rising backlash over chaos at British Steel.

Elements suspected of interference in the UK might be included on the top tier of the Foreign Influence Registration Scheme (FIRS) – although China as a whole would not be in the category.

The prospect emerged amid fears that the Beijing-backed owners of British Steel tried to ‘sabotage’ furnaces to make the UK more reliant on imports.

Ministers have admitted there will be a ‘high trust bar’ for Chinese firms to be allowed access to core parts of the economy in future.  

Touring broadcast studios this morning, Treasury minister James Murray insisted China is not a ‘hostile state’.

He denied Beijing is in the same class as Russia and Iran – the two countries that have so far been placed on the enhanced tier of FIRS.

Elements suspected of interference in the UK might be included on the top tier of the Foreign Influence Registration Scheme (FIRS) – although China as a whole would not be in the category. Pictured, Xi Jinping addresses the National People’s Congress

Touring broadcast studios this morning, Treasury minister James Murray insisted China is not a ‘hostile state’

That means from July 1 – when the register takes effect – anyone working for those nations in the UK will face prison if they do not declare what they are doing.

Mr Murray told LBC: ‘China’s not a hostile state but China is a country with whom we have a large important relationship.

‘We need to be pragmatic about it and understand that we have different ways of interacting with China in different areas of our relationship.

‘China’s the second-biggest economy in the world, fourth-biggest trading partner for the UK, there are 450,000 jobs in Britain that depend on exports to China, so we need to engage with them.

‘But I think if you look at what’s happened in recent years under the previous government, it either arguably was too naive and too ‘not eyes open’ under (Lord) Cameron and (George) Osborne, and more recently in the latter days of the previous government, there was no engagement at all.

‘And I think neither of those are quite the right approach. We need to be cool-headed and clear-eyed and pragmatic about this, and realise there areas where we’re going to co-operate, some where we’re going to compete and others where we’ll challenge.’

It was revealed last month that terrorism law watchdog Jonathan Hall KC has been tasked with drawing up a new procedure to allow the proscription of state-linked organisations.

Ministers have admitted there will be a ‘high trust bar’ for Chinese firms to be allowed access to core parts of the economy in future. Pictured, Keir Starmer with steel workers

Mr Hall’s work is intended to provide ‘more flexibility than is offered under the existing powers’.

According to the Guardian, the government is looking at placing elements of the Chinese state in the enhanced category. They include the Ministry of State Security, the United Front Work Department, and the People’s Liberation Army. 

MPs have criticised the government for failing to take the threat of the Chinese Communist Party (CCP) seriously, amid human rights abuses and sanctions on senior UK politicians.

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Parts of Chinese state could be classed as ‘enhanced’ threats alongside Russia as ministers fear Beijing-linked firm ‘was ready to sabotage British Steel’

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