Philip Hammond today warned of an “outbreak of anti-Chinese sentiment” in the Conservative Party.
The former Chancellor said the UK should not be distancing itself from China while “loosening ties” with Europe.
He was asked on BBC Radio 4’s Today programme about his view on the Government’s stance towards China on issues such as Huawei.
Downing Street is said to be considering a rethink over the use of the Chinese tech giant in the UK’s 5G network amid security concerns.
Mr Hammond said the Government had always been frank with the Chinese in private but warned now was not the time to weaken trade links with the world’s second-largest economy.
He added: “I’m concerned about the outbreak of anti-Chinese sentiment within the Conservative Party, it’s always been right to be clear-eyed about the challenges of a relationship with China and frank about the differences we have with China.
“But that seems to me over the last months to have accelerated into something which is becoming a little bit more alarming.
“We are in a position where we need to build trade relationships around the globe and China is Britain’s third largest trading partner after the EU and the US. I think we need to tread carefully in how we manage this relationship.”
However, the former director of operations at MI6 Nigel Inkster told Times Radio that Huawei’s role in 5G networks could allow China to listen in on all global communications.
Business Secretary Alok Sharma said the Government was looking to see what the impact would be on UK networks.
He added: “There is a process ongoing, we will see what that review comes to and we will set out our next steps.”
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