The British political landscape is currently gripped by a significant national security controversy following the abrupt collapse of a high-profile Chinese spy trial. This development has cast a harsh spotlight on Jonathan Powell, Keir Starmer’s national security adviser, whose extensive ties to China and alleged influence in the trial’s failure have led to accusations of ‘perverting the course of justice’ and prioritising trade relations over national security. The Conservatives are preparing for a Commons showdown, demanding urgent explanations from the government.

The trial involved Christopher Cash, a parliamentary aide, and Christopher Berry, a British teacher, who were charged under the Official Secrets Act for allegedly passing secrets to China between 2021 and 2023. However, proceedings against them were halted last month when the Crown Prosecution Service (CPS) announced it could no longer proceed due to a lack of crucial evidence. The Director of Public Prosecutions confirmed that the CPS had repeatedly requested the government to formally state that China represented a threat to national security during the period of the alleged offences, a statement that was reportedly withheld. Both men have been formally declared not guilty and steadfastly deny any wrongdoing.

At the heart of the controversy is Jonathan Powell, a figure with a long history of advocating for stronger links between Beijing and the UK, and a frequent visitor to China. Sources, while not ministers, have pointed directly to Mr. Powell as being behind the decision not to provide the necessary evidence for the prosecution. Shadow Home Secretary Chris Philp has publicly stated that by withholding this information, the government deliberately caused the prosecution to collapse, implying a prioritization of economic ties with China over national security. Mr. Philp further suggested that if Powell was indeed behind this decision, he should resign, describing the withholding of information as amounting to perverting the course of justice.

Further exacerbating concerns about Mr. Powell's impartiality are his affiliations with organizations reportedly linked to Chinese influence operations. He is listed as a ‘fellow’ of the 48 Group, a secretive lobby club founded by British communists. This group is alleged to be used by Beijing to cultivate and 'groom' British politicians and business leaders, steering them under the sway of China’s Communist Party, with the stated aim of improving trade relations. Past patrons and fellows include prominent figures such as Peter Mandelson, Tony Blair, George Osborne, Alex Salmond, Ken Livingstone, Vince Cable, Jack Straw, and Mr. Powell’s elder brother, Lord Powell of Bayswater.

Additionally, Mr. Powell founded a ‘conflict resolution’ think-tank called Inter Mediate in 2011, through which he has made several trips to China. During these visits, he held meetings with the Grandview Institution, an entity that a former diplomat officially described as a ‘front’ for China’s main foreign intelligence agency, the Ministry of State Security (MSS). Clive Hamilton, author of the book "Hidden Hand" on China’s influence, commented on Powell’s links to both the 48 Group and Grandview, stating that Grandview is a "nest of spies" and expressing concern that Powell’s position has become untenable, describing it as "beyond belief" for a national security adviser to have such associations.

The political fallout is intense. Keir Starmer has publicly stated that none of his ministers were involved in the decision regarding the evidence, yet he faces pressure to clarify his knowledge and awareness of the situation. Cabinet ministers, according to reports, consider Mr. Powell's position increasingly unsustainable, with concerns raised that the UK's strategic approach under his leadership is "a little bit fuzzy" and that he is perceived as too soft on China. There is a strong division within Whitehall, with the Home Office and MI5 reportedly pushing for the case to proceed, while the Foreign Office allegedly feared that formally labeling China a national security threat would damage crucial trade relations.

The semantic debate over whether to refer to China as an ‘enemy’ or merely a ‘challenge’ also played a critical role, as prosecutions under the Official Secrets Act typically require proof that defendants acted in the interests of an ‘enemy’. It was alleged that Mr. Powell and Sir Oliver Robbins, permanent secretary at the Foreign Office, directed that Matthew Collins, the deputy national security adviser, should not describe China as an ‘enemy’. However, the Cabinet Office has denied this, stating there was no material change provided by the government and no witnesses were limited in their evidence.

In response to the escalating crisis, Speaker Lindsay Hoyle is expected to grant an Urgent Question to the Conservatives in Parliament this week. Mr. Powell is also slated to appear before the Joint Committee on the National Security Strategy, though controversially, this session will be held in private, prompting criticism from MPs like Sir Gavin Williamson who argue for public transparency given the high public interest. Sir Lindsay Hoyle is also exploring the possibility of a private prosecution against Cash and Berry for alternative offences, although legal experts suggest such an attempt is unlikely to succeed due to the Director of Public Prosecutions' power to discontinue proceedings that don't meet the evidential test.

Adding to the climate of concern, the proposed construction of a new Chinese embassy in east London, dubbed a ‘spy campus’, remains a contentious issue. Documents suggest that British spies were 'gagged' from raising objections to the development, which was previously blocked by the government in 2022 following warnings from MI5 and Scotland Yard. The final decision on this controversial plan has been deferred amidst the ongoing row over the collapsed spy trial, with critics alleging attempts to suppress security concerns for political reasons. The revelations underscore a growing unease about the extent of China's influence and the UK government's approach to national security.