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CHINA

S. The Intelligence Community will play a key role in the work of the new Investment Security Unit (ISU): the classified and other technical advice that the Intelligence Community provide should shape the decisions made by the ISU as it seeks to balance the need for national security against economic priorities. It is essential that there is effective scrutiny and oversight of the ISU—and that can be undertaken only by this Committee.

'Countering Security Threats'
  1. The objective of pillar 3 is to counter threats from China and to counter global threats by working with China. Work undertaken under this pillar is intended to protect the UK from a broad spectrum of threats ***.[1]

    The four strands under 'Countering Security Threats' include, but are not limited to, work on counter-influence, counter-espionage, serious organised crime ***

    ***

  2. In terms of Academia, HMG (***) has been working with Universities UK to develop guidelines on countering foreign interference, and we were told that this included helping universities to diversify their international student recruitment. In relation to Industry, the National Cyber Security Centre and the Centre for the Protection of National Infrastructure were working on security advice concerning the threat to UK research and innovation;[2] and more broadly the HMG Defending Democracy programme was undertaking work to better understand the threat to Parliament, local government and the media. (The Committee was provided with a wider list of planned activities relating to this pillar in September 2020.)[3]
  3. At the time of taking evidence, the Home Office was also working on a Counter-Hostile State Activity Bill—subsequently the Counter-State Threats Bill—to include reform of the Official Secrets Act and the creation of a Foreign Agent Registration Scheme alongside other new offences and civil measures provisions. This is covered later in the chapter on Legislation.[4]

  1. Written evidence—HMG, 14 September 2020.
  2. Known as 'Trusted Research', this was also published in autumn 2020 (Written evidence—HMG, 14 September 2020).
  3. Written evidence—HMG, 14 September 2020.
  4. Written evidence—HMG, 14 September 2020. On 11 May 2022—after this Report was completed, but prior to publication—the National Security Bill was introduced in Parliament. The Committee was briefed on the Bill too late for it to be considered in this Report; however, we note that disappointingly the Bill as introduced does not include reform of the Official Secrets Act 1989 or introduce a Foreign Agent Registration Scheme (although the latter was later proposed via a Government amendment at Committee stage of the Bill).

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