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CHINA In terms of espionage, China's human intelligence collection is prolific, using a vast network of individuals embedded in local society to access individuals of interest—often identified through social media. It is also clear from the evidence we have seen that China routinely targets current and former UK civil servants ***. While there is good awareness of the danger posed, it is vital that vigilance is maintained.

In relation to the cyber approach, whilst understanding has clearly improved in recent years, China has a highly capable cyber—and increasingly sophisticated cyberespionage—operation: however, this is an area where the 'known unknowns' are concerning. Work on continuing coverage of its general capabilities must be maintained alongside further work on Chinese offensive cyber and close-proximity technical operations.

In terms of interference, China oversteps the boundary and crosses the line from exerting influence—a legitimate course of action—into interference, in the pursuit of its interests and values at the expense of those of the UK.

Decision-makers—from serving politicians to former political figures, senior government officials and the military—are, inevitably, key targets. China employs a range of tactics, including seeking to recruit them into lucrative roles in Chinese companies—to the extent that we questioned whether there was a revolving door between the Government and certain Chinese companies, with those involved in awarding contracts being 'rewarded' with jobs.

The Cabinet Office must update the Advisory Committee on Business Appointments guidelines in relation to intelligence and security matters, including with particular reference to China, and ensure that their implementation is strictly enforced.

China is an economic power, and this cannot be ignored in formulating the UK's policy towards China. Balancing the tension between security and prosperity requires dexterity, and we understand that there are a number of difficult trade-offs involved.

The length of this Inquiry has allowed us to see the development of the China policy within Government and we are reassured that, belatedly, the security aspects are now being given prominence—notably more so after the pandemic.

It is nevertheless concerning that the security community, and the Government in general, were aware of many of these issues several years ago and yet we are only now beginning to see the introduction of measures taken to protect UK sovereign interests. The lack of action to protect our assets from a known threat was a serious failure, and one from which the UK may feel the consequences for years to come.