Rishi Sunak says China is Britain’s greatest threat to economic security

In an exclusive interview, the British PM has made his strongest claims against China yet, ringing the alarm on Beijing’s means and capability to reshape the world.

British Prime Minister Rishi Sunak greets Anthony Albanese outside 10 Downing Street on Friday. Picture: Reuters

China is the single greatest threat to Britain’s economic security, ­according to British Prime Minister, Rishi Sunak.

In an exclusive interview in his Downing Street office, Mr Sunak also hailed the AUKUS agreement with Australia, the US and the UK as “the most significant multilateral defence partnership in generations”.

In comments on China that are stronger than any others he has made since becoming Prime Minister, Mr Sunak characterised China’s behaviour as “increasingly authoritarian at home and assertive abroad”.

“It represents the single biggest threat to our economic security; it’s a challenge that we need to grapple with,” he said.

Mr Sunak said China was the only country that had the means and the intent to try to reshape the international rules based system. He said democratic nations such as Britain and Australia needed to ensure they had the laws, resources and capabilities in place to make sure that they can protect themselves against “actions that would be damaging to our interests and our values”.

He hailed the deepening strategic partnership between the UK and Australia, especially their shared views on China and the Indo-Pacific region. “I think everything I’ve said Australia would agree with and the language I’m using is very similar to the language in your Defence Strategic Review,” he said. “I’ve discussed this with Anthony (Albanese) as well and we see this in a very similar way, as do our other partners Japan and Canada.”

He cited a recent British action blocking a proposed Chinese investment in a semiconductor company as an example of British resolve on China-related issues.

Mr Sunak, who hosted Mr Albanese in London prior to the coronation of King Charles and announced the date the free trade agreement between the two nations would come into force, hailed the UK-Australia relationship.

“AUKUS speaks to the incredible trust between the three nations – America, Australia and the UK – and the deep respect we have for each others’ armed forces,” he said.

In terms of the UK-Australia relationship, he said AUKUS represented “a deepening of our already strong partnership”.

“This doesn’t happen very often that countries share technology like this, having interoperable submarine fleets,” he said.

British Prime Minister Rishi Sunak with The Australian's foreign editor Greg Sheridan at No 10 Downing Street.

Nuclear-propelled submarines were a “vital” military asset. “This is one of the most important offensive capabilities countries like ours will possess,” he said. “These interoperable submarine fleets allow us to work together to ensure the openness and freedom of our oceans everywhere. These submarines can operate in multiple oceans. I think they will have an unmatched capability.”

Mr Sunak was also upbeat about the economic relationship with Australia, especially in light of the free trade agreement, Britain’s first since Brexit. “It’s an incredible economic opportunity for our two countries,” he said.

“There’s billions of pounds of trade that’s going to be unlocked. It will support tens of thousands of jobs in both our countries.”

The British leader said his nation had tilted its foreign policy towards the Indo-Pacific in part because that was where the greatest economic growth would occur.

In some balance to his strong criticisms of China’s behaviour, Mr Sunak also said it was important to engage Beijing where possible to deal with global issues such as climate change, macro-economic stability and global health policy.

Anthony Albanese, US President Joe Biden and British Prime Minister Rishi Sunak at the AUKUS summit in San Diego, California, in March.

He praised Australia’s support for Ukraine in its resistance to the Russian invasion, an issue on which London had taken the lead, with Britain being the most important international partner for Ukraine after the US. “We should all just be incredibly struck by the bravery and resilience of the Ukrainian people,” he said.

“This was a war people thought would be over in a matter of days, or weeks. Here we are over a year later with Ukraine having recaptured a large chunk of the territory Russia initially took, with a global alliance of over 140 countries in the United Nations condemning Russian behaviour, with the largest, most effective, most co-ordinated sanctions package the world has ever seen and with NATO strengthened with the addition of Finland, and Sweden to come. And countries across Europe raising their defence budgets … Australia’s contribution has been fantastic, particularly here in the UK where they are participating in Operation Interflex, helping us to train Ukrainian civilians to become soldiers. It’s humbling and inspiring. It’s a very moving experience to talk to these ordinary civilians who are being trained in a short space of time to go and fight to defend their country. Their courage should be an inspiration to us to keep giving Ukraine all the support we can.”

Mr Sunak has succeeded in stabilising the British government and ruling Conservative Party. Despite reversals in local elections in much of the nation, he is seen as offering competence, common sense and stability after a tumultuous period in British politics featuring successive overthrows of a series of prime ministers. He has set out five economic priorities for his government: halving inflation, growing the economy, reducing debt, cutting waiting lists in the National Health Service and stopping the boats that carry illegal immigrants.

But Britain, like most Western nations, spent hugely during Covid-19 and has a deep structural budget deficit. Mr Sunak believes the UK can cut the deficit over time. “It’s important that we reduce debt for economic reasons, for financial security and to reduce the pressure on interest rates and inflation,” he said.

“But I also think it’s important for moral reasons, that we don’t rack up bills and expect our children to pay for them. I’ve always believed that; it’s what Margaret Thatcher believed. It’s one of the reasons I’m a Conservative.”