HSBC, Europe's largest bank, has faced criticism from British lawmakers following controversial remarks made by their head of public affairs. Sherard Cowper-Coles, in a private event held in London, accused the UK government of being "weak" by following US policy on China. He claimed that the UK often yielded to Washington's demands and had been pressured into reducing business dealings with China. While Cowper-Coles has apologized for any offense caused, two China critics from the governing Conservative Party expressed their dismay towards the bank.
Former Tory Party leader Iain Duncan Smith stated that HSBC "has an awful lot to answer for," while backbencher Tim Loughton labeled the bank as an "apologist" for the Chinese government. The criticism highlights a growing divide within the Conservative Party between those who seek to maintain and expand trade links with China, led by Prime Minister Rishi Sunak, and those who hold reservations about President Xi Jinping's regime. The latter group wants the UK to distance itself from China due to various issues, including the handling of the Covid-19 pandemic, treatment of Uyghur Muslims, and stance on Russia's invasion of Ukraine.
Loughton further accused HSBC of becoming an apologist for the Chinese Communist Government, warning that this attitude could embolden China to disregard international rule of law and exert greater influence globally. Cowper-Coles, a former diplomat, reportedly advised attendees at the closed-door event in June that the UK should prioritize its own interests instead of blindly following the US. However, critics argue that his comments reflect a disregard for the human rights abuses committed by the Chinese government.
Luke de Pulford, executive director of the Inter-Parliamentary Alliance on China, criticized Cowper-Coles' remarks, claiming that such diplomatic pragmatism is outdated and prioritizes trade over other important factors. On the other hand, former Liberal Democrat party leader Vince Cable believes that excessive deference to US pressure is unhelpful for the UK's interests.
This is not the first time HSBC has faced criticism from British politicians. The bank has been previously chastised for denying certain Hong Kong expatriates access to their retirement funds and for establishing a Chinese communist party committee at its local investment banking arm. The UK government, led by Sunak and Foreign Secretary James Cleverly, considers China to be an "epoch-defining challenge" to national security, pointing out alleged secret police stations run by Beijing within the country. However, Cleverly's planned visit to China in July was postponed, implying ongoing dialogue between the two governments.