Liz Truss calls for ‘economic NATO’ to stand up to China

LONDON — Liz Truss will use her first major speech since leaving office to urge democracies to team up and counter the influence of China, as she warns that “the free world is in danger.”

Speaking at a summit in Tokyo Friday, the former British prime minister — who left office after just 49 days in the job — will pitch six proposals, including the establishment of “an economic NATO” to defend member countries against pressure from autocratic regimes.

The ex-prime minister’s speech will be seen as a bid to pile pressure on the U.K. government to toughen its China stance as it puts the finishing touches on a refresh of its defense and security strategy, known as the integrated review, due early next month.

The update of the integrated review was ordered by Truss during her short time in Downing Street, with the intention of classifying China as a “threat.” 

Rishi Sunak, who took over from her in No.10, has signaled he would not use such language, referring to the country as “a systemic challenge” instead.

This puts him on a collision course with China hawks in his own Conservative party, and he is also facing calls to boost defense spending when his government unveils its budget next month.

Speaking at the Inter-Parliamentary Alliance on China Symposium, Truss will recommend an audit of China’s reach across critical industries; deeper economic links with Taiwan including potential trade agreements; an upgrade to Taiwan’s diplomatic status; and a stronger Pacific defense alliance.

Truss will also urge the G7 group of major economies to agree on a package of sanctions to be imposed on Beijing in the event of further military escalation around Taiwan.

The speech — extracts of which were released in advance by her team — marks Truss’ first overseas public engagement since her turbulent stint at No. 10, with other speakers including fellow former prime ministers Scott Morrison and Guy Verhofstadt.

She is expected to highlight “a shared belief in freedom, self-determination and democracy,” and the need to formulate “a strong response to the strategic issues posed by the People’s Republic of China.”

Truss will explicitly condemn the so-called “golden era” of U.K.-China relations under her old boss, David Cameron, saying that a state visit by Chinese President Xi Jinping to the U.K. during that time “sent the wrong message.”

In contrast, she will say, “we should be doing all we can to strengthen our ties with Taiwan.”

The intervention underscores Truss’ ambition to continue speaking out on foreign policy despite having only quit No.10 just four months ago as colleagues lost faith in her administration amid market turmoil.

Truss relaunched herself on the U.K. domestic political scene last week, arguing that she had encountered “system resistance” to her plans as prime minister, and did not get “the level of political support required” to see through a controversial program of tax cuts.

Eleni Courea contributed reporting.