Index:ISC-China.pdf

Title	Intelligence and Security Committee China report
Author	Intelligence and Security Committee of Parliament
Year	2023
Source	pdf
Progress	Proofread—All pages of the work proper are proofread, but not all are validated
Transclusion	Fully transcluded

Pages (key to Page Status)

Title — Title — iii iv v vi vii viii 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 — — — — —



CONTENTS

1. Overview ................................................................................................................................................................................................................................................................................................................................................................................................

   1

2. China's interest in the UK ................................................................................................................................................................................................................................................................................................................................................................................................

   1

3. The Inquiry ................................................................................................................................................................................................................................................................................................................................................................................................

   1

4. The 'whole-of-state' threat ................................................................................................................................................................................................................................................................................................................................................................................................

   2

5. Protecting the UK ................................................................................................................................................................................................................................................................................................................................................................................................

   3

6. PART ONE: THREAT AND RESPONSE ................................................................................................................................................................................................................................................................................................................................................................................................

   7

7. THE NATIONAL SECURITY THREAT TO THE UK ................................................................................................................................................................................................................................................................................................................................................................................................

   9

8. CHINA: AIMS AND AMBITIONS ................................................................................................................................................................................................................................................................................................................................................................................................

   11

9. What does China want from the UK? ................................................................................................................................................................................................................................................................................................................................................................................................

   15

10. WHAT IS CHINA SEEKING IN THE UK? ................................................................................................................................................................................................................................................................................................................................................................................................

    19

11. Political influence ................................................................................................................................................................................................................................................................................................................................................................................................

    19

12. Economic advantage ................................................................................................................................................................................................................................................................................................................................................................................................

    21

13. THE CHINESE INTELLIGENCE SERVICES ................................................................................................................................................................................................................................................................................................................................................................................................

    25

14. Scale ................................................................................................................................................................................................................................................................................................................................................................................................

    25

15. A broad remit ................................................................................................................................................................................................................................................................................................................................................................................................

    28

16. ‘Whole-of-state’ approach ................................................................................................................................................................................................................................................................................................................................................................................................

    30

17. ESPIONAGE ................................................................................................................................................................................................................................................................................................................................................................................................

    31

18. Gathering human intelligence ................................................................................................................................................................................................................................................................................................................................................................................................

    31

19. Cyber operations ................................................................................................................................................................................................................................................................................................................................................................................................

    34

20. INTERFERENCE ................................................................................................................................................................................................................................................................................................................................................................................................

    37

21. Government ................................................................................................................................................................................................................................................................................................................................................................................................

    38

22. Interference in elections ................................................................................................................................................................................................................................................................................................................................................................................................

    42

23. Media ................................................................................................................................................................................................................................................................................................................................................................................................

    43

24. The Chinese diaspora in the UK ................................................................................................................................................................................................................................................................................................................................................................................................

    45

25. HOW IS THE UK RESPONDING? ................................................................................................................................................................................................................................................................................................................................................................................................

    49

26. HMG'S BALANCING ACT ................................................................................................................................................................................................................................................................................................................................................................................................

    51

27. Conflicting priorities ................................................................................................................................................................................................................................................................................................................................................................................................

    51

28. A joined-up approach ................................................................................................................................................................................................................................................................................................................................................................................................

    52

29. THE 'STRATEGY': FRAMEWORKS, PLANS AND PILLARS ................................................................................................................................................................................................................................................................................................................................................................................................

    55

30. The China Senior Responsible Owner and National Strategy Implementation Group ................................................................................................................................................................................................................................................................................................................................................................................................

    57

31. The China Framework ................................................................................................................................................................................................................................................................................................................................................................................................

    57

32. The Intelligence Outcomes Prioritisation process ................................................................................................................................................................................................................................................................................................................................................................................................

    63

33. The tri-Agency approach ................................................................................................................................................................................................................................................................................................................................................................................................

    64

34. HMG Hostile State Activity Strategy ................................................................................................................................................................................................................................................................................................................................................................................................

    65

35. HMG RESOURCING ................................................................................................................................................................................................................................................................................................................................................................................................

    69

36. SIS ................................................................................................................................................................................................................................................................................................................................................................................................

    69

37. GCHQ ................................................................................................................................................................................................................................................................................................................................................................................................

    70

38. MI5 ................................................................................................................................................................................................................................................................................................................................................................................................

    70

39. JIO ................................................................................................................................................................................................................................................................................................................................................................................................

    70

40. Other organisations ................................................................................................................................................................................................................................................................................................................................................................................................

    71

41. Potential for increase in resourcing ................................................................................................................................................................................................................................................................................................................................................................................................

    72

42. DEFENDING THE UK ................................................................................................................................................................................................................................................................................................................................................................................................

    75

43. Responsibility ................................................................................................................................................................................................................................................................................................................................................................................................

    75

44. Focus and coverage ................................................................................................................................................................................................................................................................................................................................................................................................

    76

45. Protective role: CPNI and NCSC ................................................................................................................................................................................................................................................................................................................................................................................................

    77

46. A new approach ................................................................................................................................................................................................................................................................................................................................................................................................

    79

47. Challenges in tackling Chinese spying ................................................................................................................................................................................................................................................................................................................................................................................................

    79

48. Challenges in countering Chinese interference operations ................................................................................................................................................................................................................................................................................................................................................................................................

    81

49. ON THE 'OFFENSIVE' ................................................................................................................................................................................................................................................................................................................................................................................................

    85

50. Allocation of effort ................................................................................................................................................................................................................................................................................................................................................................................................

    85

51. Requirements ................................................................................................................................................................................................................................................................................................................................................................................................

    86

52. Coverage ................................................................................................................................................................................................................................................................................................................................................................................................

    87

53. Effects ................................................................................................................................................................................................................................................................................................................................................................................................

    87

54. Are SIS and GCHQ 'achieving'? ................................................................................................................................................................................................................................................................................................................................................................................................

    89

55. SIS and GCHQ challenges in operating against China ................................................................................................................................................................................................................................................................................................................................................................................................

    90

56. WORKING WITH OUR ALLIES ................................................................................................................................................................................................................................................................................................................................................................................................

    95

57. Five Eyes ................................................................................................................................................................................................................................................................................................................................................................................................

    95

58. Other partners ................................................................................................................................................................................................................................................................................................................................................................................................

    96

59. LEGISLATION ................................................................................................................................................................................................................................................................................................................................................................................................

    97

60. The need for new legislation on Hostile State Activity ................................................................................................................................................................................................................................................................................................................................................................................................

    97

61. PART TWO: CASE STUDIES ................................................................................................................................................................................................................................................................................................................................................................................................

    101

62. CASE STUDY: ACADEMIA ................................................................................................................................................................................................................................................................................................................................................................................................

    102

63. CHINESE INTERFERENCE IN UK ACADEMIA ................................................................................................................................................................................................................................................................................................................................................................................................

    103

64. Influence and interference ................................................................................................................................................................................................................................................................................................................................................................................................

    103

65. Economic advantage ................................................................................................................................................................................................................................................................................................................................................................................................

    109

66. THE GOVERNMENT RESPONSE ................................................................................................................................................................................................................................................................................................................................................................................................

    115

67. Who: Taking responsibility for tackling influence and interference ................................................................................................................................................................................................................................................................................................................................................................................................

    115

68. How: Taking action on influence and interference ................................................................................................................................................................................................................................................................................................................................................................................................

    116

69. What: Understanding the threat from theft and subversion ................................................................................................................................................................................................................................................................................................................................................................................................

    116

70. How: Taking action on economic advantage ................................................................................................................................................................................................................................................................................................................................................................................................

    117

71. CASE STUDY: INDUSTRY AND TECHNOLOGY ................................................................................................................................................................................................................................................................................................................................................................................................

    122

72. CHINA'S APPROACH TO TECHNOLOGY ................................................................................................................................................................................................................................................................................................................................................................................................

    123

73. Why the UK? ................................................................................................................................................................................................................................................................................................................................................................................................

    125

74. What does China target in the UK? ................................................................................................................................................................................................................................................................................................................................................................................................

    126

75. METHODOLOGY: OVERT ................................................................................................................................................................................................................................................................................................................................................................................................

    129

76. Licensing agreements ................................................................................................................................................................................................................................................................................................................................................................................................

    129

77. Foreign Direct Investment ................................................................................................................................................................................................................................................................................................................................................................................................

    129

78. Inward investment into China ................................................................................................................................................................................................................................................................................................................................................................................................

    131

79. Standards-setting bodies ................................................................................................................................................................................................................................................................................................................................................................................................

    132

80. METHODOLOGY: COVERT ................................................................................................................................................................................................................................................................................................................................................................................................

    135

81. Human intelligence ................................................................................................................................................................................................................................................................................................................................................................................................

    135

82. Cyber ................................................................................................................................................................................................................................................................................................................................................................................................

    137

83. THE UK GOVERNMENT RESPONSE ................................................................................................................................................................................................................................................................................................................................................................................................

    139

84. Understanding the task ................................................................................................................................................................................................................................................................................................................................................................................................

    139

85. Foreign investment and national security ................................................................................................................................................................................................................................................................................................................................................................................................

    141

86. Disrupting activity ................................................................................................................................................................................................................................................................................................................................................................................................

    147

87. CASE STUDY: CIVIL NUCLEAR ENERGY ................................................................................................................................................................................................................................................................................................................................................................................................

    150

88. CHINESE INTEREST AND INVESTMENTS ................................................................................................................................................................................................................................................................................................................................................................................................

    151

89. China's interest in the UK Civil Nuclear sector ................................................................................................................................................................................................................................................................................................................................................................................................

    152

90. Chinese investments ................................................................................................................................................................................................................................................................................................................................................................................................

    153

91. Linked investments ................................................................................................................................................................................................................................................................................................................................................................................................

    155

92. ESPIONAGE AND INFLUENCE ................................................................................................................................................................................................................................................................................................................................................................................................

    159

93. Espionage: Incentive and opportunity ................................................................................................................................................................................................................................................................................................................................................................................................

    159

94. Influence: Leverage and disruption ................................................................................................................................................................................................................................................................................................................................................................................................

    163

95. The position of the United States ................................................................................................................................................................................................................................................................................................................................................................................................

    165

96. THE GOVERNMENT RESPONSE ................................................................................................................................................................................................................................................................................................................................................................................................

    171

97. Cross-government scrutiny of foreign investment ................................................................................................................................................................................................................................................................................................................................................................................................

    172

98. Regulation ................................................................................................................................................................................................................................................................................................................................................................................................

    174

99. Intervention: The 'special share' ................................................................................................................................................................................................................................................................................................................................................................................................

    175

100. Advice to Industry ................................................................................................................................................................................................................................................................................................................................................................................................

     177

101. Wider UK Intelligence Community efforts ................................................................................................................................................................................................................................................................................................................................................................................................

     180

102. ANNEX A: COVID-19 ................................................................................................................................................................................................................................................................................................................................................................................................

     181

103. Investigation of origin ................................................................................................................................................................................................................................................................................................................................................................................................

     182

104. China's initial response ................................................................................................................................................................................................................................................................................................................................................................................................

     184

105. Disinformation ................................................................................................................................................................................................................................................................................................................................................................................................

     186

106. Vaccine development and medical espionage ................................................................................................................................................................................................................................................................................................................................................................................................

     187

107. Debt leverage ................................................................................................................................................................................................................................................................................................................................................................................................

     189

108. Capitalising on the pandemic ................................................................................................................................................................................................................................................................................................................................................................................................

     190

109. Impact on the UK Intelligence Community ................................................................................................................................................................................................................................................................................................................................................................................................

     190

110. ANNEX B: FULL LIST OF CONCLUSIONS AND RECOMMENDATIONS ................................................................................................................................................................................................................................................................................................................................................................................................

     193

111. ANNEX C: CODE WORDS ................................................................................................................................................................................................................................................................................................................................................................................................

     205

112. ANNEX D: LIST OF WITNESSES ................................................................................................................................................................................................................................................................................................................................................................................................

     207

113. Officials ................................................................................................................................................................................................................................................................................................................................................................................................

     207

114. External Expert witnesses ................................................................................................................................................................................................................................................................................................................................................................................................

     207