Banned China tech firms lobbied for new London embassy

Chinese tech companies that have been banned on national security grounds in both the UK and the US have reportedly been lobbying for the approval of a new Chinese embassy in London. These state-controlled firms submitted letters backing the embassy project, which has sparked concerns that the building could be used as a hub for espionage activities overseas. One of the key lobbyists is ZTE Mobile, a state-controlled company that British intelligence agency GCHQ has deemed a security risk to UK telecommunications infrastructure. ZTE Mobile urged officials to back the redevelopment of Royal Mint Court, a historic site in east London that China purchased for £255 million. In its letter to the government planning inquiry, ZTE described the proposed embassy as a “beautiful” development. Another major player involved is China Mobile, also state-owned and known to have close ties with the People’s Liberation Army. The company expressed its “full support” for the embassy project in a separate letter. Both companies come with controversial backgrounds: ZTE Mobile was fined $1 billion in 2017 for illegally sending equipment to North Korea and Iran in violation of US sanctions, while China Mobile recently faced tightened US restrictions on its technology. The lobbying efforts by these firms have reignited worries that the embassy might serve as a digital spying centre, potentially compromising sensitive data. Security concerns are heightened by the fact that Royal Mint Court is a Grade II listed building located above a complex network of fibre-optic cables that carry information into the City of London. Some rooms in the embassy’s redevelopment plan have been redacted for “security reasons,” which only fuels suspicions that espionage equipment could be installed. Steve Reed, the housing secretary who assumed office in September, is expected to make the final decision on the project come December. This will mark the end of China’s decade-long push to establish a London base. The initial application for Royal Mint Court was submitted to the Tower Hamlets local authority but was later taken over by the national government, which launched its own formal inquiry. Beijing has issued warnings about potential “consequences” if the project is not approved, but UK opposition leader Keir Starmer has vowed not to be “pushed around” on the matter. During the inquiry, multiple Chinese state-controlled organizations sent letters urging approval. Besides ZTE Mobile and China Mobile, other supporters include the Industrial and Commercial Bank of China and electric car manufacturer BYD. In his letter, Kenneth Cao, managing director of ZTE UK, highlighted environmental aspects, hoping the site would contribute to London’s carbon neutrality goals. China Mobile also emphasized the potential community and economic benefits the embassy might bring, stating the development would be sensitive to local residents’ needs. Despite these positive claims, the ongoing worries over national security and spying continue to dominate public and governmental discourse surrounding the project.