Cyber deal to stop Chinese spying on us

Just because we’re co-operating doesn’t mean we’re soft on human rights, says PM

DAVID Cameron unveiled a nonaggression pact with China on cyber- crime yesterday as he insisted his softly-softly approach to the country’s abysmal human rights record was bearing fruit.

In a tacit admission that the two countries are engaged in an online war, Mr Cameron and Chinese President Xi Jinping pledged the end of ‘cyber- enabled theft of intellectual property, trade secrets or confidential business information’.

The deal – which mirrors a similar agreement between China and the US last month – reflects growing concern about the impact of cyber attacks. MI5 views China as one of the biggest perpetrators of cyber-crime.

The US agreement has faced criticism for being too feeble, but No 10 yesterday insisted the British deal would have an impact.

In a separate deal, China also confirmed it will invest £6 billion in the construction of a nuclear power station at Hinkley Point, in Somerset.

The deals were announced as Mr Cameron and Mr Xi held two hours of talks at Downing Street.

The Prime Minister has come under fire for downplaying human rights during Mr Xi’s four- day state visit, with his friend and former adviser Steve Hilton describing his ‘ sucking up’ as a ‘national humiliation’.

Mr Cameron has also faced criticism for failing to do more to stand up to China over its dumping of cut-price steel on the world market, which is blamed for the loss of more than 5,000 jobs in the British steel industry in recent weeks.

Downing Street said Mr Cameron had raised China’s record of repression, executions and torture yesterday, although a spokesman declined to say whether the discussions had lasted longer than a minute.

Speaking at a press conference, Mr Cameron said: ‘I totally reject the idea you either have a conversation about human rights and steel or you have a strong relationship with China.

‘I want both and we are delivering both and it’s when you have that strong relationship that you are able to discuss all of these issues.’

Mr Xi forced a smile at the press conference as he was asked about human rights. But he insisted China should not be judged by Western standards. ‘ China attaches great importance to human rights,’ he said.

‘We combine the universal value of human rights with Chinese reality and have found a path of human rights development suitable to China’s conditions.’

Mr Xi also defended China’s record on steel, saying his country was also suffering as a result of over-production.

‘ The world is facing an overcapacity of iron and steel, not just the UK,’ he said. ‘This is because of the impact of the international financial crisis, the reduction of demand. China’s iron and steel industry is also facing excess capacity and the challenge of how to absorb that capacity.

‘China has taken a series of steps to reduce the capacity. We have reduced more than 700 million tons of production capacity and you can just imagine our task of finding jobs for those workers.’

Mr Cameron came under fire in the Commons over the crisis in the steel industry, with Labour leader Jeremy Corbyn saying he should do more to prevent Chinese dumping.

The Prime Minister said the UK had already backed EU tariffs on cheap Chinese steel and said he would continue to raise the issue with Mr Xi.

But, during angry exchanges with Labour MPs, he said the Tories would not accept ‘self-righteous lectures’ from Labour, which presided over an even greater collapse in the steel industry.

China and the UK are expected to seal deals worth £30 billion during Mr Xi’s visit this week.

The biggest and most controver- sial involves China’s stake in Hinkley Point.

French energy giant EDF yesterday announced an investment agreement with the China General Nuclear Power Corporation (CGN) to build the reactor in Somerset, with the first power generated in 2025. EDF’s share in Hinkley Point C will be 66.5 per cent and CGN’s will be 33.5 per cent, with total construction costs forecast to be £18 billion – £2 billion more than the figure given three years ago, as a result of inflation.

The two companies have also agreed a wider partnership for the joint development of new nuclear power stations at Sizewell in Suffolk and Bradwell in Essex, which could be operated by the Chinese.

Security experts have warned against the wisdom of allowing China to take a stake in Britain’s critical infrastructure. Other critics complain that the deals are coming at a ruinous price, with consumers likely to see a rise in their electricity bills of more than £30. But ministers say the deals will produce years of clean electricity.

‘Human rights suitable to China’