Is Liz Truss’ Thatcher reawakening what UK-China relations need?

An admirer of Thatcher and hawkish on China, Britain’s new prime minister may nevertheless wish to avoid following her idol’s Cold War playbook when dealing with Beijing
With domestic and political pressure weighing on the UK’s relationship with China, Truss will have to strike a fine balance

Mark Logan

Published: 9:15am, 7 Sep 2022

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“When we hear statistics that China adds an economy the size of Australia every year, or that real incomes have continued to increase … these are hardly more reliable than any other official statements … moreover, a country that produces what no one wants to buy is hardly in the best of economic health.”

Could you imagine new British Prime Minister Liz Truss saying something like this, evoking Margaret Thatcher when taking over the fraught reins of UK-China relations?

Thatcher was quoted making similar remarks when she was prime minister, evaluating the Soviet Union’s lack of progress. Fast-forward to the 2020s and much has been made of how Truss hints at a Thatcher reawakening.

The Soviet Union was viewed as the biggest challenger to the Western way of life. Now, successive administrations in Washington have coalesced around the China challenge as the modern-day equivalent.

Former British prime minister Margaret Thatcher (left) seen visiting Zagorsk, Russia, on March 29, 1987, and Britain’s new Prime Minister Liz Truss in Kyiv, Ukraine, on February 17. Photo: AFP

Political winds may blow into the UK from Europe, but more often than not it is US politics and trends that are given more recognition in British thinking. So, fear of China’s rise has reached consensus-levels in Westminster.

And, in a perfectly working democracy, the views and aspirations of the electorate will be reflected in their political representatives – the members of parliament. This means that the new prime minister will have to pay close attention to the mood of the nation in both domestic and international affairs.

Yet the challenge and opportunity that China presents to Britain’s new leader are of a different proportion than what Thatcher and Ronald Reagan faced in the 1980s: the world is much more interconnected, despite decoupling; the West has wrestled with sluggish growth for an extended period of time; and now inflation, cost of living and energy security are making the inbox of my party leader one I wouldn’t wish on my worst enemies.

Against this backdrop, what can we expect from the new resident of 10 Downing Street?

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Firstly, the swirl of domestic demands in Britain will be at the forefront of MPs’ minds. Our economic policy in the long term, and the potential for a snap budget, will mean the prime minister and her chosen chancellor will pay due consideration to how China policy develops.

According to official figures, the UK imported £63.6 billion (US$73 billion) of goods from China in 2021. This accounted for 13.3 per cent of all goods imports, making China our largest importing partner. However, there are rumours that the bilateral economic dialogue between our two countries is under review. And, as foreign secretary, Truss stated that the UK is “prepared to prioritise national security over short-term economic gain”.

Secondly, it will be revealing to see how Truss’ previous interactions with China will flavour the incoming approach. As an employee in the British consulate in Shanghai almost 10 years ago, I remember assisting Truss, then secretary of state for environment, food and rural affairs, as we sought to sell as much craft beer and shipping containers of milk to the Chinese during the short epoch known as the Golden Era in bilateral ties.

In 2014, Truss also led a delegation to understand the secrets of Chinese schoolchildren’s success in mathematics and other hard subjects. Will there be the appetite to learn from one another again?

Yet subsequently, and thirdly, our two countries’ relations, the world, and the Conservative Party have moved in a different direction. Domestic and political pressure have meant that the UK no longer prioritises a trade agreement with China, and the difficult topics of Xinjiang, Huawei and Hong Kong (in which Truss has played an important role) would suggest that the first call between our new leader and China’s President Xi Jinping will be a masterclass in diplomacy.

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The next six weeks would ideally offer a honeymoon period, allowing Truss to form coherent foreign policy objectives. Look out for performances in the House of Commons, the choice of new foreign secretary and Asia minister, along with the Conservative Party conference at the beginning of October.

That said, how UK-China ties develop cannot be viewed in a UK-centric vacuum. The “panda” in the room will be the outcome of the 20th Party Congress a couple of weeks after the Conservative Party conference. It may give some indication as to China’s domestic and international priorities, and consequentially how we dance with one another.

On top of some Thatcherite wisdom – “any person who understands running a home will be nearer to understanding the problems of running a country” – I add some Chinese characteristics: “governing international relations is like cooking a small fish – don’t stir too much”.

I call on leadership in the UK, China and the wider international community to find ways to make existing institutions more robust, tinkering where needed, without stirring too much populist sentiment.

This is all happening as we witness a changing China and a changing Britain. In the case of my own country, we are going through a process of redefining ourselves in a post-Brexit world.

Thatcher was one of our most accomplished prime ministers. However, we are living in a different time, and the conundrum that China presents is not wholly analogous to that offered by the Soviets. Engaging my inner Thatcher, “Europe was created by history. America by philosophy. UK-China relations by economics.”

We need to strike a balance between posturing in international politics and responding to domestic pressures, while leaving this world in a better place than we found it. In this endeavour I will be “jiayou”-ing or cheering Liz on from the backbenches.

Mark Logan MP represents Bolton North East in the UK Parliament, where he is vice-chair for the All-Party Parliamentary China Group