Naming an alleged Chinese spy linked to Prince Andrew has triggered a much wider row about the UK’s relationship with China.
This government faces the same question as its predecessors: how close is it safe to get to the regime and at what cost?
Sir Keir Starmer has already given clear signals about his positioning, meeting with President Xi last month at the G20 summit.
It was the first time a British prime minister has done so since 2018 and marked a thawing of relations.
And this is set to continue with the Chancellor Rachel Reeves planning to visit in January for an economic summit, another olive branch that Number 10 has said today will still go ahead.
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It’s clear the new government is taking a pragmatic approach, described as one of co-operation and engagement, but with room for challenge on issues such as human rights and climate change.
It’s still much more cautious than the friendly David Cameron era, which included a memorable trip to the pub with the Chinese president.
But despite this it is still drawing criticism from long-standing China sceptics like Iain Duncan Smith, who has warned that the Yang Tengbo case is just the “tip of the iceberg”.
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What it does show in stark terms is the ease with which a Chinese businessman got access to the upper echelons of the British state.
It’s now up to the prime minister to decide if that should change his government’s new strategy, and if he is willing to take a hit on trade to protect national security.