UK to bolster military spending by US$6 billion, introduce measures to counter China

Spending increase over two years is part of a refreshed integrated review of defence, diplomatic policy to be unveiled on Monday
The announcement comes ahead of Sunak’s planned ‘Aukus’ meeting with his US, Australian counterparts

Britain

Chad Brayin London

Published: 6:30am, 13 Mar 2023

Why you can trust SCMP

Britain’s government said it plans to increase its military spending by £5 billion (US$6 billion) over the next two years and introduce new measures to address China’s “increasingly concerning” military, financial and diplomatic activities.

The latest moves will be part of an updated review of the government’s defence and diplomatic strategies, to be unveiled in full on Monday, and follow repeated calls from members of Prime Minister Rishi Sunak’s Conservative Party to label Beijing a strategic threat alongside Russia.

“As the world becomes more volatile and competition between states becomes more intense, the UK must be ready to stand our ground,” Sunak said in a statement on Sunday night. “By investing in our armed forces for the long-term, we will be ready for the challenges of today and of the future.”

The refreshed review comes as Sunak prepares to meet with fellow Aukus alliance members – US President Joe Biden and Australian Prime Minister Anthony Albanese – in San Diego on Monday.

They are expected to unveil a plan to provide American- and British-designed submarines to Australia to counter China’s naval powers in the Pacific as part of three-way security pact known as Aukus.

23:20

Talking Post: Kevin Rudd unpacks the risk of war between China and the US with Yonden Lhatoo

“We have seen all too clearly in the last year how global crises impact us at home, with Russia’s appalling invasion of Ukraine driving up energy and food prices,” Sunak said. “We will fortify our national defences, from economic security to technology supply chains and intelligence expertise, to ensure we are never again vulnerable to the actions of a hostile power.”

About £3 billion of the additional spending will be invested in its defence nuclear enterprise, including funding for industrial infrastructure and enhancing support for its submarine programme.

Another £1.9 billion will be used to replenish and bolster munitions stockpiles, including munitions donated to Ukraine to fend off Russia.

As part of the review, the British government also is expected to unveil a variety of new measures designed to enhance the UK’s economic security, technology capabilities and international development.

Britain’s Prime Minister Rishi Sunak leaves 10 Downing Street in central London on February 22. Photo: AFP

Among its initiatives, the UK will establish a new National Protective Security Authority within MI5, Britain’s domestic counter-intelligence and security agency, to provide security advice to UK businesses and other organisations.

The government also will establish an economic deterrence initiative to strengthen its sanctions enforcement and double funding for a governmentwide China capabilities programme designed to increase Mandarin-language training and diplomatic China expertise.

A new £1 billion integrated security fund will be set up to address economic and cybersecurity, counter terrorism and human rights objectives raised in the review and the government will seek to refresh its critical minerals strategy to ensure access to components for future technology.

The refresh of the 2021 integrated review began in the fall under Sunak’s predecessor Liz Truss, who had reportedly advocated for labelling China as a strategic “threat” similar to Russia following its invasion of Ukraine last year.

In the July 2021 review, China was described as a “systemic competitor” and the “biggest state-based threat to the UK’s economic security”.

Sunak has called for the UK to “evolve” its foreign policy on China, saying in November that the so-called golden era of cooperation between the two countries had ended and that Britain needed to focus on economic security in its relationship with Beijing.

For example, the British government used a new law that went into effect in January 2022 to stymie several corporate takeovers and investment deals by a number of mainland China- and Hong Kong-based companies in the past year, including blocking the Chinese-led takeover of Britain’s biggest microchip factory.

However, an increasingly vocal group of cross-party MPs have called for the government to take a more confrontational approach to Beijing, particularly when it comes to allegations of human rights violations in Xinjiang Uygur autonomous region or the controversial national security law in Hong Kong.

The latest integrated policy review comes against the backdrop of increasingly strained relations between Beijing and London and a larger focus by the British government on improving its ties with other governments in the Indo-Pacific region.