Alleged Chinese spy linked to Prince Andrew is named

Court ruling intensifies row over government's Beijing charm offensive

- Jessica Elgot Eleni Courea

An alleged spy who befriended Prince Andrew was named yesterday as the businessman Yang Tengbo amid a row at the heart of government over how to deal with influential Chinese nationals.The allegations surrounding Yang have cast a spotlight on the government's plans for a foreign interests register and whether to designate China as an enhanced risk in the middle of Labour's new charm offensive towards Beijing.

The security minister, Dan Jarvis, said a planned shake-up of laws that would require those working for a foreign government to declare it or face criminal prosecution would now not be ready until summer 2025. His Tory predecessor, Tom Tugendhat, said MI5 had advised that the scheme would be pointless unless it designated China as the highest risk.

Yang, who split his time between the UK and China for almost two decades, ran the Duke of York's Pitch@Palace in China - a Dragons' Den-style project.

He was also given authority to act on the prince's behalf in Chinese business dealings, according to court documents. He was also pictured with two former Conservative prime ministers, Theresa May and David Cameron. Yang is also known to have met a number of other politicians, including the former deputy prime minister John Prescott.

In a statement, Yang insisted he was not a spy and had done "nothing wrong or unlawful", and had asked the high court to lift the anonymity order so he could challenge "ill-founded" claims against him.

Jarvis told the Commons yesterday the government would lay the regulations for the foreign influence registration scheme (FIRS) in the new year and it will go live in summer 2025. He said no decision had been taken on whether to designate China as an enhanced risk.