U.K. resists calls to label China a threat as researcher accused of spying claims innocence

U.K. foreign intelligence chief Richard Moore of MI6 said in July that China was his agency's "single most important strategic focus."

The British government on Monday resisted calls to label China a threat to the U.K. following the revelation that a researcher in Parliament was arrested earlier this year on suspicion of spying for Beijing. China branded the allegation of espionage a “malicious smear.”

U.K. Business Secretary Kemi Badenoch said Britain should avoid calling China a “foe” or using language that could “escalate” tensions.

“China is a country that we do a lot of business with,” Badenoch told Sky News. “China is a country that is significant in terms of world economics. It sits on the UN Security Council. We certainly should not be describing China as a foe, but we can describe it as a challenge.”

Prime Minister Rishi Sunak’s spokesman, Max Blain, said it was wrong to reduce the U.K.’s approach to China “just to one word.”

“We need to take the opportunity to engage with China, not to just shout from the sidelines,” Blain said.

Tensions between Britain and China have risen in recent years over accusations of economic subterfuge, human rights abuses and Beijing’s crackdown on civil liberties in the former British colony of Hong Kong.

Britain’s governing Conservatives are divided on how tough a line to take and on how much access Chinese firms should have to the U.K. economy. More hawkish Tories want Beijing declared a threat, rather than simply a challenge, the word Sunak has used.

Under Britain’s new National Security Act, if China were officially labeled a threat, anyone working “at the direction” of Beijing or for a state-linked firm would have to register and disclose their activities or risk jail.