China is under pressure over its espionage efforts (Image: Getty)
Fury has erupted over Labour’s failure to order Chinese spies to declare themselves despite being at the “epicentre of everything to disrupt democracy and freedom”.
Russia will be placed on the top level of the Government's forthcoming foreign influence registration scheme (Firs), aimed at protecting the UK from malign foreign influence.
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But Beijing will not be included, as Labour pursues closer relations with the Communist state to bolster economic growth.
Former Conservative Party leader Sir Iain Duncan Smith tried to further push the Government to include China in the scheme.
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Iain Duncan Smith has blasted Beijing (Image: Getty)
Sir Iain said China was supporting Russia in its war in Ukraine, was aiding Iran in destabilising the Middle East and was also backing North Korea.
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He added the United Front Work Department was "disrupting life in the UK" and referred to illegal police stations in Britain, and Chinese dissidents in the UK having been attacked.
He said: "The truth is that we have a real problem because China is at the epicentre of everything to disrupt democracy and freedom. Why is China not in that statement today?"
Shadow home secretary Chris Philp welcomed the inclusion of Russia in the top level of the Foreign Influence Registration Scheme (Firs), before questioning why China has yet to be added.
He described China as the "elephant in the room" before telling the Commons: "We know China engages in industrial-scale espionage, seeking to steal technology from government, universities and from industries. They repress Chinese citizens here and have sought to infiltrate our political system."
He said: "There is no question in my mind, China should be in that enhanced tier."
Mr Philp said it was "astonishing" that China has not been listed as such, adding: "Isn't the truth this - in their desperation to get economic growth going, after the Chancellor's rather unfortunate autumn budget, the Government seems to be prioritising economic links over national security when it comes to China?"
Liberal Democrat Home Office spokeswoman Lisa Smart said: "Last year, Parliament's intelligence and security committee issued the excoriating China report, which said the Government doesn't have a clear strategy on China and hasn't devoted sufficient resources to tackling the threat it posed."
She added: "Does the minister believe that the building of this embassy will encourage the Chinese Communist Party to carry on its attempts to subvert our democracy?"
Conservative MP Sir Julian Lewis (New Forest East) said: "Two out of the four ugly totalitarian sisters have been included on the list so far and I trust that China and North Korea will both be added to the enhanced tier in the fullness of time.
"Can he take the message back to the Government that the House is concerned about building the biggest Chinese communist embassy in western Europe, in London?
“It's not clear why the Government needed to call it in on security grounds, given the local authority wanted to refuse permission completely."
Russia will be added to the "enhanced tier" of the list, which is a status reserved for nations that pose a risk to the safety of the UK's interests.
It means anyone who is directed by Russia to carry out activities in the UK must declare it or face five years in prison.
Home Secretary, Yvette Cooper, said: "For too long, the Kremlin has been responsible for unacceptable threats to our national security - from damaging cyber attacks, malign attempts to interfere in our democratic processes and attempted assassinations in this country.
"The new measures will make it harder for Russia to conduct hostile acts against us in future and demonstrate once again this government's unshakeable commitment to keep our country and our people safe."
Announcing the move to MPs on Tuesday, security minister Dan Jarvis said Russia "presents an acute threat to UK national security" and highlighted Russia's illegal invasion of Ukraine as showing the state's "intent to undermine European and global security".
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Mr Jarvis said anyone carrying out activity in an arrangement with a number of Russian state bodies, including the head of state, armed forces and intelligence services, will have to register with Firs.
"We also intend to specify several political parties which are controlled by Russia, including the United Russia party," he added.
It comes amid pressure for Russia to progress a deal for a Ukraine ceasefire.
Since Russia's invasion of Ukraine, the UK and international partners have sanctioned more than 2,000 individuals and entities, the Home Office said.
The UK has also expelled more than 20 Russian intelligence officers since the Salisbury poisonings in 2018, and several Russian diplomats in response to harassment of British diplomats.
Last month, members of a Russian proxy spy ring were convicted for their part in what was described by counter-terror police as one of the "largest and most complex" enemy operations to be uncovered on UK soil.
Foreign Secretary David Lammy said Russia has pursued increasingly hostile policies against the UK in the past few years and that ministers have responded robustly including by tightening visa laws for the Kremlin's cronies.
"Today we're going even further, holding Russia to account and exposing its shady attempts at interference to sunlight for all to see," he said.
Firs was initially expected to come into force in 2024 but, in August, the new Labour Government confirmed a delay to its implementation.
The registration scheme is now confirmed to go live on July 1.
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Home Office minister Dan Jarvis said in response to calls for China to be placed on the enhanced scheme: "I hope that he will accept that this Government takes these matters incredibly seriously.
"I hope that he has heard the remarks I have made both earlier today and in my previous statement in response to the threat from Iran, that we will consider countries on an individual basis and we will take evidence-based decisions about how best to proceed.
"I'm sorry that I'm not going to be able to speculate on which countries may or may not specified in the future."