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UK accuses China of using academics to spy on AI and other tech research - Finance news and analysis from Global Banking & Finance Review
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UK accuses China of using academics to spy on AI and other tech research

Published by Global Banking & Finance Review

Posted on September 30, 2026

4 min read

· Last updated: September 30, 2026

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UK Warns China Using Academics for Espionage in AI and Tech Research

By Michael Holden

MI5 Issues Espionage Alert Over Chinese Academic Funding

LONDON, Sept 30 (Reuters) - Britain's MI5 spy agency issued an unprecedented alert on Wednesday to warn that a Chinese organisation was involved in funding academic research into topics such as AI on behalf of Beijing's state security service.

Details of the Espionage Alert

In its "Espionage Alert", MI5 said more than 100 UK-based academics had contributed to projects funded by the China General Technology Research Institute (CGTRI), which had "very strong ties" to the Chinese Ministry of State Security (MSS), Beijing's civilian intelligence service.

"MI5 has identified that the primary purpose of CGTRI is to fund academic research that directly improves MSS technical capability for espionage," the alert said.

"UK academics have contributed to CGTRI-funded projects on topics including Artificial Intelligence (AI), cybersecurity, covert communications systems and steganography. This activity supports MSS espionage, which poses a threat to UK national security."

Understanding Steganography and Espionage Risks

Steganography is the practice of hiding information within messages or objects.

The warning, which MI5 said was the first time it had independently published an alert publicly, is the latest in a series of accusations concerning Chinese espionage activities, and highlights the tension between British security concerns and the government's moves to build ties with Beijing.   

China's Response to the Allegations

China's embassy in Britain described the allegations as "imaginary and purely fabricated".

"We firmly oppose such baseless allegations and have lodged solemn representations with the UK side," an embassy spokesperson said in a statement.

"We urge the UK intelligence authorities to stop spreading falsehoods and stop undermining educational exchanges and research cooperation between China and the UK."

UK Government's Reaction and Security Measures

Ministerial Actions and Legal Implications

UK MINISTER VOWS 'ROBUST ACTION' AGAINST THREATS

MI5 said many academics and institutions would have engaged in good faith with the CGTRI, which it said was sometimes translated as the China Academy of General Technology (CAGT), without knowing of its close ties to the MSS.

But it said those who continued to do so would now risk prosecution under Britain's National Security Act, which was passed in 2023 to give greater powers to target foreign spying and hostile state activities.

Security Minister's Communication to Universities

Security minister Dan Jarvis said he had written to all university chiefs in Britain to ensure staff ended any relationship with the Chinese organisation.

"This alert exposes attempts by Chinese intelligence to covertly benefit from the expertise and research of our academics, undermining our national security, and that of our allies," he said in a statement.

"International partnerships are vital to ensure our universities and research institutes continue to thrive, but we will take robust action to defend against the threats we face."

Broader Context: UK-China Relations and Espionage Concerns

Britain's relationship with China has become increasingly complicated in recent years.

On the one hand, the British government has sought better relations with Beijing to improve trade ties and approved plans for China to build its largest embassy in Europe in London, but it has also repeatedly warned of Chinese spying efforts and attempts to undermine UK democracy.

Previous Warnings and Five Eyes Alliance Involvement

Last year, Ken McCallum, MI5's director-general, said Chinese spies posed a daily national security threat, and were creating fake job adverts to try to lure British professionals into handing over information.

His agency also issued an alert to British lawmakers last November that Chinese agents were targeting them to collect information and influence their activity by posing as headhunters or companies. 

In June, security agencies from the "Five Eyes" alliance of the US, Britain, Canada, Australia and New ​Zealand published a warning about Chinese spies aggressively using online job platforms to recruit people ‌with access to sensitive information.

China's London embassy said that warning was "entirely fabricated and constitutes malicious ‌slander".

Reporting Credits

(Reporting by Michael Holden; additional reporting by William James Editing by Aidan Lewis and Gareth Jones)

Key Takeaways

  • MI5 issued its first independent Espionage Alert on Sept 30, 2026, identifying CGTRI as a front for Chinese intelligence, advising universities to sever ties (mi5.gov.uk).
  • More than 100 UK-linked academics have unknowingly contributed to CGTRI-funded projects in sensitive areas such as AI, cyber‑security and steganography (mi5.gov.uk).
  • Security Minister Dan Jarvis warned of potential prosecution under the National Security Act 2023, urging universities to end collaborations immediately (theguardian.com).

References

Frequently Asked Questions

What did the UK's MI5 warn about Chinese academic espionage?
MI5 issued an alert that a Chinese organization funded UK academic research, mainly in AI and tech, to enhance Chinese state espionage capabilities.
Which organization is linked to Chinese espionage in UK academia?
The China General Technology Research Institute (CGTRI), connected to China's Ministry of State Security, was named by MI5.
What fields of research are affected by the Chinese funding?
Research areas include Artificial Intelligence, cybersecurity, covert communications systems, and steganography.
How is the UK government responding to these espionage threats?
Security officials have warned universities to cut ties with the CGTRI and warned of prosecution under the National Security Act for ongoing cooperation.
How has China responded to the UK's espionage accusations?
China's embassy in London denied the allegations, calling them fabricated and accused the UK of undermining research cooperation.

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