Page:ISC-China.pdf/135

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China's Approach to Technology
  1. the challenge of the rise of China absolutely raises huge questions for the future of the western alliance … At the moment, it is still the case that, broadly speaking, the Chinese are seeking to use espionage and influence to steal advantage that the West itself still holds, and then clearly the balance of that will tilt across the next few years and China will become—has already, in effect, become—the world's leader in many areas of manufacturing, and may become the world's leader in almost all the world's areas of manufacturing.[1]

  2. We asked the NCSC about the threats to the UK from China and were told that 'Made in China 2025' is a "classic Chinese long-term programme with the most profound implications for us and our allies".[2] If China achieves technological dominance, it will make it harder for the UK to protect its information and retain defence, economic and intelligence advantages. A 2018 Joint Intelligence Committee (JIC) Assessment noted that China is the main hostile state threat to UK prosperity.[3] The actions of China against UK Industry therefore pose both a threat to national security and a threat to our economic well-being.

National security concerns over Chinese dominance in technology

Artificial intelligence: HMG cites artificial intelligence (AI) as an area where increasing Chinese dominance is causing concem since, if China becomes the market leader, Western countries might have to accept the rules and regulations that China attaches to the technology and Chinese standards on AI applications. This might then allow the Chinese state to access data collected and processed by Chinese AI, or to accept the global use of AI in citizen monitoring and control. Furthermore, there are significant intelligence and military uses of AI, such as obtaining and analysing data and evaluating numerous scenarios ('war-gaming') at a faster rate than humanly possible. AI surveillance systems could obtain and analyse data on ***.

Quantum computing: As with AI, key concerns in relation to quantum computing centre round the susceptibility of data to state acquisition and exploitation, and the compulsion to accept Chinese norms and standards even if they do not comply with the UK's own. ***.[4]

Why the UK?
  1. As an advanced and open economy, the UK is a clear target for China. The UK has a reputation for being open to foreign investment, and China invests in the UK more than in any other European state. Foreign Direct Investment into the UK from China between 2000 and 2017 was approximately £37bn (with the next largest recipient of Chinese investment being Germany, at £18bn).[5]

  1. Oral evidence—MI5, *** December 2020.
  2. Oral evidence—NCSC, *** July 2019.
  3. Written evidence—JIO, *** June 2018.
  4. Written evidence—HMG, 30 August 2019.
  5. 'Chinese FDI in Europe in 2017', Mercator Institute for China Studies, April 2017.

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