Twenty-four years ago, during a Chatham House seminar that I attended, the panel predicted that China would overtake the USA’s economy in the late 2020s. At that time China was assessed by the Government as posing “no conventional military threat to the UK”. Furthermore, Washington was sharing technology and military information with Beijing, as the Pentagon had placed all US Army doctrine on the internet, which was freely accessible by anyone.
This came to a head on 1 June 2011 during the British Chief of the General Staff’s main conference before the Coalition Government’s Strategic Defence Review. In the Keynote session, the Deputy Chief of The People’s Liberation Army (General Zhang Qinsheng) gave a well-received address about the Strategic Context and Nature of Conflict (lots of Sun-Tzu). The following day, when the Commanding General of US Cyber Command was asked probing questions by the Chinese delegates, it became clear that the relationship was changing.
Since then, China has extended its influence throughout the World through democracy and economics. There is a certain irony that while Putin and Trump have failed in their recent military operations against Ukraine and Iran, their attempts to return to the bipolar Cold War have merely opened the door to President Xi. The photographs of him with the US and Russian Presidents this month remind me of images of Medieval Kings visiting the Pope. Not only has Washington lost half its Allies in Europe, but its Intelligence fraternity has lost huge influence in London with respect to the Government’s relations with China (e.g. permission for the new Chinese Embassy to proceed). The big question is: will the City follow?










