Sir Keir Starmer has acknowledged that China represents a “national security threat” to Britain, despite the Government’s efforts to strengthen ties with Beijing.

At the Lady Mayor’s Banquet in Guildhall on Monday, the Prime Minister said it would be “a dereliction of duty” not to engage with China, the world’s second-largest economy.

Sir Keir said that establishing a cautious relationship with the East Asian country would give Britain a boost on the world stage.

However, he also stressed the importance of recognising the “reality” that Beijing “poses national security threats”.

The Prime Minister told the Lady Mayor’s Banquet: “For years we have blown hot and cold.

“We had the golden age, which then flipped to an Ice Age. We reject that binary choice.

“So our response will not be driven by fear, nor softened by illusion. It will be grounded in strength, clarity and sober realism.”

Sir Keir went on to label China “a nation of immense scale, ambition and ingenuity” and a “defining force in technology, trade and global governance”.

He added: “This is not a question of balancing economic and security considerations.

“We don’t trade off security in one area, for a bit more economic access somewhere else.

“Protecting our security is non-negotiable – our first duty. But by taking tough steps to keep us secure, we enable ourselves to co-operate in other areas.”

The Government’s approach to relations with Beijing came under fire following the collapse of the Westminster spy case earlier this year.

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Christopher Cash, 30, and Christopher Berry, 33, were accused of passing sensitive parliamentary intelligence to the Chinese Communist Party.

However, the charges against the men were dropped after a key Government witness refused to describe China as a threat to national security.

National Security Adviser Jonathan Powell is said to have made clear in evidence for the case that the Government would label Beijing as a “challenge” rather than an “enemy”.

The Government faced accusations that it deliberately allowed the case to collapse to protect ties with China, a notion ministers strongly denied.

Shortly after the case was dropped, Kemi Badenoch told the Conservative Party Conference that “Labour deliberately collapsed the trial”, before accusing Sir Keir of wanting to “suck up Beijing”.

Last week, it emerged that the Prime Minister is poised to formally approve China’s new “super embassy” in London, which is set to become the largest in Europe.

The location of the new embassy has sparked espionage concerns due to its location between the financial districts of the City of London and Canary Wharf.

It is expected to be officially announced on December 10.

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