Chinese tech firms banned on national security grounds in both the UK and the United States lobbied for Beijing’s new embassy in London, growing fears it could be used as an overseas “spy centre”.
State-controlled company ZTE Mobile, which was deemed by GCHQ to pose a risk to British telecommunications infrastructure that “cannot be mitigated”, urged officials to approve the scheme, The Sunday Times first reported.
In a letter to the government’s planning inquiry, the company described the proposed development of Royal Mint Court, the building located in east London that China purchased for £255m, as “beautiful”.
Meanwhile fellow state-owned company China Mobile, which has close links to the People’s Liberation Army, also expressed its “full support” for the embassy in a letter.
ZTE Mobile was fined $1bn in 2017 for sending equipment to North Korea and Iran in violation of US sanctions, while China Mobile saw the US government tighten restrictions on the use of its equipment just last week.
Spying fears
The lobbying by the tech giants could reignite concerns that China will use the development to engage in digital espionage and access sensitive daya.
The grade II listed building is above a web of fibre-optic cables used to carry information into the City of London and several rooms on the plan have been redacted for “security reasons”, fuelling further suspicion about the installation of espionage equipment.
Steve Reed, who took over as housing secretary in September, will make a final decision on the proposal in December, bringing China’s decade-long effort to establish a London base to a conclusion.
The application for Royal Mint Court was submitted to the local authority, Tower Hamlets, before being called in by the government, which initiated its own formal planning inquiry.
Beijing have warned of “consequences” if the government do not give the green light for the project, but Starmer warned last week he would not be “pushed around” on the matter of the embassy.
The letters
During the inquiry, several Chinese state-controlled bodies submitted letters calling for the scheme to be approved.
According to official guidance, the inspectorate is required to “fully” consider their contents.
Kenneth Cao, managing director of ZTE UK, wrote that he hoped the site would help achieve “carbon neutrality in London” a nod to the environmental credentials of the application which must be considered.
China Mobile wrote that it “believes [the new embassy] will bring benefit to the local community and boost the economy of the borough” after being developed “with sensitivity to the needs and interest of all residents”.
Other Chinese companies that submitted similar letters of support include the Industrial and Commercial Bank of China, and electric car manufacturer BYD.