It follows an audit of relations with China completed in June 2025 but never published.
In its recommendations, the committee called for Labour to clearly designate “red zones” within the UK economy which should be off-limits to Chinese trade and investment.
Ministers should also designate which forms of economic engagement can be permitted, subject to risk mitigation, and which should be “green zones” where trade is fully permitted and encouraged.
The report also recommended preparing a “tariff regime to be deployed if China refuses to rebalance its economy, continues to subsidise its industry unfairly, or fails to offer fully reciprocal market access”.
Preventing the transfer of sensitive data and technologies, securing supply chains so as to reduce dependence, and banning imports made using forced labour are also among the “new rules” set out in the report.
