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Per multiple official sources, China has reportedly warned to retaliate against the United Kingdom if officials move to designate certain elements of its intelligence apparatus under newly implemented foreign influence registration requirements.

Diplomatic Strains Escalate

Chinese representatives reportedly communicated this message to the British diplomatic corps soon after news surfaced that the UK government was contemplating such measures. This situation has raised concerns given the administration's continued hesitance to apply stricter foreign influence regulations on lobbyists acting for China or any branch of the PRC government.

Existing Lobbying Disclosure System

Currently, only Russia and the Islamic Republic have been included in the enhanced category of the external lobbying registry (Firs), which came into effect in July and became fully operational this autumn. This system requires all individuals in the United Kingdom representing a external government or entity to disclose their activities to the government or risk legal penalties.

• The stricter category applies to nations and organizations considered a particular risk.
• It requires additional reporting beyond the basic requirements.
• Consequently, anyone conducting undeclared work on behalf of Iran or Russia faces up to 60 months in jail.

Proposed Designations

Earlier this year, reports indicated that instead of designating China as a whole, ministers were considering including specific parts of the Chinese political system that have been alleged to conduct interference in European and North American nations to the enhanced tier.

These organizations reportedly include:

• The PRC's primary intelligence agency
• The CCP (CCP)
• The United Front Work Department
• The People's Liberation Army (PLA)

Dismissed Espionage Case

Meanwhile, the government is under growing pressure over the sudden collapse of an espionage case involving two Britons, including a former parliamentary researcher. Christopher Cash, a former parliamentary aide to Conservative MPs, and his friend the second defendant had been accused of spying for China.

Their trial was unexpectedly dropped by the public prosecution authority in the autumn. Both defendants had denied the allegations.

Judicial Complications

Journalistic accounts indicated that the government's unwillingness to officially characterize China as an "enemy" in witness evidence from a intelligence representative led to the case's collapse. Jonathan Powell, the prime minister's top security official, allegedly led a meeting in Whitehall where he informed attendees that the government's testimony would avoid labeling the Chinese government an adversary.

Official insiders later rejected the claim that Powell was involved in restricting official testimony.

The legal complication stemmed from the Official Secrets Act of 1911, which specifies that a person is guilty of spying if they transmit data "directly or indirectly useful to an enemy". Yet, the present government's national security strategy characterizes China as a "geo-strategic challenge" rather than an enemy.

Continuing Bilateral Engagement

Notwithstanding these disagreements, British-Chinese diplomatic ties appear to be improving. Multiple senior government figures have traveled to Beijing on official visits since the current administration came to power. These include Peter Kyle, who engaged in commercial discussions last month, and Jonathan Powell, who visited during the summer.

Additionally, talks have supposedly taken place between diplomatic corps representatives and legislative officials regarding the prospect of removing the ban on the Chinese ambassador accessing the legislature, potentially in exchange for Beijing lifting its sanctions on UK parliamentarians.

The UK leader Keir Starmer is widely expected to make a bilateral trip to Beijing in the beginning of the coming year, though the specific schedule might be dependent on international factors, including a potential trip by ex-American leader the Republican figure.