Dominic Raab is to slash aid money to China following outcry over a £71 million package sent to the world’s second-largest economy in a single year.
The Foreign Secretary has ordered £2.9 billion to be wiped from the aid budget this year in the wake of the coronavirus crisis, with a source stressing the “axe would fall” on China.
Relations between the West and the East Asian economic superpower have rapidly soured amid a sweeping new security law imposed on Hong Kong, accusations of human rights abuses of Uighur Muslims and an alleged failure to stem the Covid-19 outbreak.
Britain’s move to cut aid funding comes after it emerged £71.6m of taxpayers money was spent either directly or through the UN and EU on China, some of it to help businesses compete with Britain.
The cash from 2018, the latest figures available, was revealed in the Department for International Development's annual report, released hours before MPs break onto summer recess until September.
Beijing is currently threatening economic reprisals against Britain after the UK suspended its extradition treaty with Hong Kong and banned Chinese tech giant Huawei from its 5G network.
China also stands accused of trying to steal coronavirus research from other countries through hacking, including targeting British scientists working on a coronavirus vaccine, and sending blindfolded Uighurs on trains to what it calls “re-education camps”.
Government sources said that a “line by line” review of aid projects had taken place and what were considered the “40 most vulnerable countries” would now be prioritised for assistance.
However, Mr Raab insists the UK will still meet its commitment to spend 0.7 per cent of gross national income (GNI) on international development.
The UK aid money sent to China was also used to train Chinese citizens to use technology, helping it settle business disputes, urging it to “support human rights” and to qualify teachers.
Millions were also given to the China prosperity fund, which gives money to schemes that “address market failures and weaknesses that impede China’s inclusive economic growth”
The sum was a 29 per cent increase on 2017, DfIDs annual report shows, despite China’s annual GDP being five times higher than that of Britain.
Tory MPs demanded an inquiry on Wednesday night into why British taxpayers’ money was being spent on a country that is “breaking every rule in the book”.
However, Sarah Champion, chairwoman of the Commons International Development Committee, criticised at the “poor practice” to announce the budgetary slash on the final day of Parliament as MPs could not scrutinise it.
The spending on Official Development Assistance (ODA) was set to be £15.8 billion this year before the Covid-19 crisis emerged.