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Chinese spies set to be exempt from toughest new national security law by Starmer

Russia and Iran are expected to be subject to the toughest restrictions under the UK’s Foreign Influence Registration Scheme, while China will be exempt for now

China is expected to be exempted from the toughest restrictions of the UK’s new spying laws, The i Paper has been told.

The Government is facing a major imminent row over its relationship with Beijing as it puts the finishing touches to the Foreign Influence Registration Scheme (FIRS).

The scheme, designed to track people working for hostile states in the UK, will for the first time compel anyone in the UK acting for a foreign power or entity to declare their activities.

It will have two levels – political influence, for basic lobbying activity by people from designated countries, and enhanced, designed to curb the activities of hostile states that could threaten the UK’s national security.

Those who fall into the enhanced category will be required to make extra disclosures about their obligations to the country concerned.

Sources said Russia and Iran will be included in the enhanced tier, which will be published shortly following sign-off from Downing Street, but China will not.

While a decision on China has not yet been taken, business and diplomatic sources told The i Paper they did not expect Beijing to be placed in the enhanced tier of restrictions at the moment.

The expected move risks a major row with MPs, including in Labour, who are hawkish on Beijing.

Work on FIRS is in its “final stages”, according to one Government source, while others with knowledge of the policy’s development suggested it was now awaiting sign-off from Sir Keir Starmer in No 10.

But the developments emerged as the Government moves closer to China, with Chancellor Rachel Reeves using a visit to the country earlier this month to drum up trade and investment, which she said was “crucial” to economic growth, and after Foreign Office Minister Catherine West said the UK has to “balance” national security and trade given its “fragile” economy.

An insider said China is not expected to be placed on the enhanced tier at the moment because London’s relationship with Beijing is so much more complicated and more consultation is required.

This does not, however, mean China will never be placed on it.

It is understood there is no timescale on the consultation but ultimately it would be a political decision.

The Foreign Office is currently separately conducting an “audit” of UK relations with China, which will be conducted through the three-pronged approach of “cooperate, compete and challenge”.

Even if it is confirmed that China will be exempted from the enhanced tier for now, insiders said this did not mean the UK was not taking action in response to Beijing’s activities, including spying allegations relating to the Chinese businessman Yang Tengbo, who has been linked to Prince Andrew.

What is FIRS?

The Foreign Influence Registration Scheme is a register of lobbying activity by people from, or working for, a foreign power.

There are two levels, a less restrictive political influence tier and a stricter enhanced tier.

The political influence tier requires people from designated countries to register any activities involving communications with ministers, MPs, senior civil servants and election candidates – essentially lobbying activity.

Those who fall into the enhanced tier will be required to make extra disclosures about contractual obligations to the country concerned

The enhanced tier covers a wider range of activities that have been instructed by the foreign state in question. The wording of “all relevant activities” to be recorded for the enhanced tier has raised concerns among businesses with links to China, because their commercial interests would be affected. The individual who carries out any such activities is responsible for registering, rather than the foreign state in question.

Failing to register will be punishable by up to two years in prison and could also involve a fine.

Plans for a register of foreign agents were first unveiled in October 2022, but it has taken more than two years to finalise its publication.

At the time of the launch Ken McCallum, head of MI5, described FIRS as a “modern power designed to tackle a modern threat”.

He added: “The UK is in strategic contest with states that seek to undermine our national security, democratic institutions and commercial advantage at an unprecedented scale. We need new, modern tools and powers to defend ourselves, proportionately but firmly.

“Alongside the other vital measures introduced in the National Security Bill, the new Foreign Influence Registration Scheme will make it harder – and riskier – to operate covertly in the UK at the behest of a foreign power. It will also increase openness and transparency around the scale of foreign influence in our political affairs and make it harder for our adversaries to undermine our democracy.”

The Home Office has been contacted for comment.



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