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US, UK ties strained after collapse of China espionage case: Report

  • By Al Mayadeen English
  • Source: The Sunday Times
  • 12 Oct 2025 13:39
  • 4 Shares
5 Min Read

The collapse of a UK espionage case against two alleged Chinese spies has sparked a diplomatic rift with Washington.

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    Former British parliamentary researcher Christopher Cash arrives at Westminster Magistrates' Court, where he faces an Official Secrets Act charge related to allegedly gathering information for China, in London, on April 26, 2024. (Jeff Moore/PA via AP)

The Times has revealed on Sunday growing tensions between London and Washington after the White House warned that Britain's decision to abandon the prosecution of two alleged Chinese spies could jeopardize the transatlantic intelligence partnership.

US President Donald Trump is said to have expressed concern about the UK's dependability following the collapse of the case against Chris Cash, 30, a former parliamentary researcher, and Christopher Berry, 33, an academic. Charges were dropped last month after the government failed to present evidence that China posed a national security threat, a key element required for the espionage charges to stand.

A senior official from the Trump administration said, "The United States has been warning allies about the Chinese threat to our combined national security since President Trump first came into office in 2017. The US government exercises extreme caution in sharing information with foreign governments subject to adversarial coercion and influence. We are especially careful in jurisdictions where our adversaries can act with impunity."

Pressure is also mounting in Washington, where senior Republicans have urged the UK to resume the prosecution. John Moolenaar, chairman of the US House of Representatives' China committee, stated, "As a target of [Chinese Communist Party] espionage, it is my hope that the UK government will not allow this case to falter and will take the steps necessary to ensure a clear message is sent and proper justice is served."

Allegations of political interference

The controversy has intensified amid reports that Prime Minister Keir Starmer's government may have bowed to Chinese pressure, according to The Sunday Times. A cabinet minister reportedly told colleagues that the case was dropped "to appease China, otherwise there would be no further investment." Allegations have since surfaced that Jonathan Powell, the prime minister's national security advisor, played a pivotal role in the decision, with some claiming he sought to avoid damaging trade relations with Beijing.

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A former MI6 chief, Sir Richard Dearlove, said there were serious concerns about Powell's judgment. "If [Powell's] views are such that we are equivocal about China's activities strategically, for me, that does raise a question about his suitability for the post," he said, adding, "If the government did give in to Chinese pressure and bullying, that is completely unspeakable."

The scandal has triggered outrage across Westminster. Kemi Badenoch, the Conservative leader, accused the government of having "deliberately collapsed the China spy case and then tried to cover it up," warning that the decision "has not only misled the public and seemingly parliament as well, but put our relationship with our closest ally in danger." Priti Patel, the shadow foreign secretary, added that it would have been "inconceivable" for ministers not to have been involved in the decision, demanding Starmer "come clean" before Parliament.

Blame between Prosecutors and ministers

The Crown Prosecution Service (CPS), which brought the original case, blamed the government for withholding vital evidence despite repeated requests. Its director, Stephen Parkinson, said prosecutors had spent "many months" waiting for material needed to proceed. Starmer defended the decision by claiming the evidence could not have been produced because China had not been declared a national security threat at the time of the alleged offenses. However, it later emerged that MI5, MI6, and the government had designated Beijing a threat during that period.

The case's implosion has also revived concerns over Britain's evolving policy toward China. Trump has personally warned Starmer against approving a vast new Chinese embassy near London's financial district, while Beijing has linked progress on the project to trade and investment concessions, according to The Times. According to officials, Zheng Zeguang, China's ambassador to the UK, has told the Foreign Office that his government will not resubmit its embassy plans unless assured of approval.

Embassy row and economic pressure

The Chinese steelmaker Jingye, which owns British Steel, reportedly offered to forgo a £1 billion compensation claim in exchange for the embassy being approved, a proposal that has further inflamed political controversy.

Meanwhile, in Washington, Trump has reignited his trade war with China, raising tariffs to 130 percent following Beijing's decision to block exports of key minerals used in Western defense and technology industries.

Read more: China slams US 'double standards' after Trump's 100% tariff threat

An emergency debate in the House of Commons is expected as early as Monday, with MPs from across the political spectrum calling for a full investigation into whether Starmer's government sacrificed national security for economic diplomacy. A senior minister admitted the issue is "likely to get worse," with speculation mounting that Powell's future in government is now in question.

  • United States
  • Keir Starmer
  • US-UK relations
  • espionage
  • China
  • United Kingdom

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