'The whole world is watching' - Hong Kong extradition treaty suspended and arms embargo extended in breakdown of relations with China

Mr Raab told MPs the Government “will always protect our vital interests” in a statement in the Commons.

He said: “Let me be really clear about this – we want to work with China.

“There is enormous scope for positive, constructive engagement, there are wide-ranging opportunities from increasing trade to co-operation in tackling climate change, as I’ve said in particular, with a view to the COP26 summit next year which the UK will of course be hosting.

“But as we strive for that positive relationship, we are also clear sighted about the challenges that lie ahead. We will always protect our vital interests including sensitive infrastructure and we won’t accept any investment that compromises our domestic or national security.”

Relations with China have soured in recent weeks due to the Asian superpower’s imposition of a tough new national security law on Hong Kong.

UK ministers have also condemned human rights abuses against China’s Uighur population in the north-western Xinjiang province.

And tensions were further heightened amid the Government’s decision last week to exclude the tech giant Huawei from the UK’s 5G network – reversing a decision in January allowing it a limited role.

Mr Raab said: "There remains considerable uncertainty about the way in which the new national security law will be enforced. I would just say this: the UK is watching and the whole world is watching.”

The Prime Minister earlier said: “There is a balance here.

“I’m not going to be pushed into a position of becoming a knee-jerk Sinophobe on every issue, somebody who is automatically anti-China.

“But we do have serious concerns.”

Mr Raab added that the Government has “grave concerns” about the “gross human rights abuses” taking place in China’s Xinjiang region.

He added: “We have been clear regarding the new national security law which China has imposed on the people of Hong Kong – a clear and serious violation of the UK-China Joint Declaration and with it, a violation of China’s freely assumed international obligations.

“On July 1, I announced that we are developing a bespoke immigration route for British nationals overseas and their dependence giving them a path to citizenship in the UK and I can update the House that the Home Secretary will set out further details on the plans for a new bespoke immigration route for BN(O)s and their dependants before recess.

“This bespoke route will be ready by early 2021. In the meantime the Home Secretary has already given Border Force officers the ability to grant leave to BN(O)s and their accompanying dependants at the UK border.”

He said: “Given the role China has now assumed for the internal security of Hong Kong and the authority it’s exerting over law enforcement, the UK will extend to Hong Kong the arms embargo that we’ve applied to mainland China since 1989.

“To be clear, the extension of this embargo will mean there will be no exports from the UK to Hong Kong of potentially lethal weapons, their components or ammunition and it will also mean a ban on the export of any equipment not already banned which might be used for internal repression such as shackles, intercept equipment, firearms and smoke grenades.”

He added: “The Government has decided to suspend the extradition treaty immediately and indefinitely, and I should also tell the House that we would not consider reactivating those arrangements unless and until there are clear and robust safeguards which are able to prevent extradition from the UK being misused under the new national security legislation.”

In a combative BBC interview yesterday, Chinese ambassador to the UK, Liu Xiaoming denounced Britain for “dancing to the tune” of the US and accused Western countries of trying to foment a “new cold war” with China.

He also rejected the allegations of widespread abuses against the mainly-Muslim Uighur people, accusing “so-called Western intelligence” of making repeated “false allegations” against China.

He suggested video footage, said to be from Xinjiang, showing men, kneeling and blindfolded waiting to be led onto trains by police officers was “fake”.

Meanwhile, China is expected to be high on the agenda this week when US secretary of state Mike Pompeo travels to London for talks with senior British figures.

Mr Pompeo flies out today ahead of meetings expected tomorrow with Boris Johnson and Mr Raab, as well as MPs pressing the Government to take a harder line on China.

The US has warmly welcomed the Government’s U-turn on Huawei, which followed intensive lobby by the Trump administration.

Ministers said they had little choice after the intelligence services warned they could no longer be sure Huawei products were secure after the US imposed fresh sanctions on the company.