Keir Starmer’s China headache grows as spying case collapse fuels new questions

UK PM faces fresh scrutiny after witness statements fail to call China an “enemy,” deepening doubts over dropped espionage charges.

British Prime Minister Keir Starmer’s effort to move past a politically sensitive China espionage scandal has backfired, as the release of government witness statements has reignited scrutiny over the country’s handling of the case, and over his own leadership.

Last month, prosecutors abruptly dropped spying charges against two British citizens, former parliamentary researcher Christopher Cash and academic Christopher Berry, accused of passing information to Beijing between 2021 and 2023. Both men denied the allegations.

The Crown Prosecution Service (CPS) said it could not proceed because it lacked crucial evidence that Britain officially viewed China as a national security threat, evidence the government had failed to supply despite repeated requests.

The missing label: Britain stops short of calling China an 'enemy'

Facing accusations that his government interfered to avoid angering Beijing, Starmer released three witness statements from Deputy National Security Adviser Matthew Collins in an attempt at transparency.

While the statements detailed Chinese “malign activity” in Britain, none explicitly called China an “enemy power.” That absence, Starmer said, made it legally impossible for prosecutors to frame the alleged espionage as a direct national security threat.

In his December 12, 2023 statement, Collins wrote:

“It is my assessment that the suspects’ alleged activities were prejudicial to the safety or interests of the UK, and the information and material passed would be directly or indirectly useful to the Chinese state.”

But in a second statement, he qualified:

“It is important for me to emphasise, however, that the government is committed to pursuing a positive economic relationship with China.”

The nuance, acknowledging risk while promoting engagement, captures the UK’s uneasy balancing act with Beijing.

Starmer’s balancing act: growth versus geopolitics

Starmer’s Labour government has made economic recovery and growth a central priority. As part of that, it has sought to rebuild ties with China, a country it describes through its 'three Cs approach,' to compete, cooperate, and confront.

That approach aims to protect British security interests while keeping trade and investment channels open. But critics say it’s sending mixed signals, particularly when national security cases intersect with diplomacy.

The Conservative opposition accused Starmer of failing to defend the legal process and leaving “many unanswered questions” about the role of ministers and the national security team in the dropped case.

Public trust and political risk

Starmer’s approval ratings are already at their lowest since taking office last year, and the China controversy risks deepening perceptions of indecision and weakness.

He has denied any ministerial involvement in the case, saying that Collins provided all available evidence and that the CPS made its decision independently.

Still, legal experts remain unconvinced.

Commentator Joshua Rozenberg wrote on Substack:

“It is hard to see how specific allegations of espionage could not be a threat to national security. Answers are needed from prosecutors.”
The CPS now faces calls to explain why it abandoned what had been described as a landmark test of Britain’s updated espionage laws—legislation designed precisely to address covert influence from states like China.

A case that refuses to fade

What was meant to be a line drawn under controversy has instead become another political liability for Starmer: a reminder that managing relations with China in today’s geopolitical climate is a near-impossible balancing act.

By releasing the documents, Starmer hoped to prove transparency. Instead, he may have exposed just how conflicted Britain’s China strategy remains, caught between economic need, diplomatic caution, and national security realities.

(With inputs from Reuters)