London Daily

Focus on the big picture.
Thursday, Nov 13, 2025

Department of Health did £90,000,000 deal with firm listed in Chinese hotel room

Department of Health did £90,000,000 deal with firm listed in Chinese hotel room

The Department of Health (DHSC) signed two PPE deals worth more than £90 million with a state-backed Chinese firm listed at a hotel room in Beijing, newly-published documents show.

The heavily-redacted contracts have emerged as the Government is accused of signing off ‘secretive big money deals’ with foreign firms despite British companies having tendered their services.

Matt Hancock’s department spent an estimated £9.5 billion on vital PPE equipment during the first wave as it tried to rush supplies to the NHS supply chain, according to Tussell market intelligence.

The deals struck with Beijing Union Glory Investment Co. Ltd feature in documents which were released last week.

The largest amount was £69.9 million, paid for surgical theatre gowns in a contract that began in May 2020. Under the terms, 70% of the contract value was to be paid by transfer through China Everbright Bank within three working days of the deal being struck.

The company’s address is listed as Room 9401A, Guobin Hotel, No9 Fuwai Street, Xicheng District. The closest hotel is the opulent Presidential Beijing, also known as the Guobin, which lies in the business district, although the postcode is a few digits different.

The grand hotel has 486 bedrooms, including the Royal, Presidential and State suites, which offer a 24-hour butler service, and three executive floors which boast ‘bespoke facilities, business tools and complimentary services’.

Matt Hancock has said his department prioritised getting vital stocks of PPE to the frontline during the pandemic


The suites are billed as offering ‘an exclusive, discreet environment in which to fuse business or leisure with unsurpassed pleasure’, while guests can also make use of a grand ballroom.

A source familiar with the district said the address provided by Beijing Union Glory is the same as the location given on the hotel’s website.

The Presidential did not reply to a request for comment.

Another contract for gowns, which listed the same address, was signed off for £26.4 million the previous month.

Again, the terms included a 70% down-payment, this time within two working days. In this instance, the buyer was the British Embassy in Beijing on behalf of the UK Government.

Both documents are heavily redacted with quantities and unit prices blacked out, making it impossible to ascertain if the orders reflected value for money for the taxpayer. Although the award notices have been included on the Government’s online register since October, the corresponding documents were only added last week.

MP Matt Western said British companies which repurposed their operations to respond to the pandemic have been dealt a ‘kick in the teeth’ after being overlooked in favour of contractors mainly based in China and Turkey.

Mr Western has taken up the case of companies which say they were overlooked for PPE contracts despite spending hundreds of thousands of pounds answering a ‘call to arms’ during the first wave.

Mr Western, who represents Warwick and Leamington, said: ‘I have called for the firms in my constituency – and others across the UK that suffered financially after being overlooked for PPE contracts – to be reimbursed by the Government and prioritised for any future NHS contracts.

‘The secretive big money deals reached with foreign firms like Beijing Union Glory in China is a kick in the teeth for them.

‘Firms like Contechs in my constituency have taken a big hit as a result of this betrayal after the Government’s “call to arms” in April.

‘They invested heavily to develop and manufacture PPE here in the UK, expanding manufacturing space and sourcing capital equipment only to be told at the last minute they would not be successful.

‘It is infuriating to hear about the DHSC signing off contracts with Conservative Party donors, companies with no prior experience and chums of the Secretary of State – with the equipment purchased sometimes unusable.

‘And now profiteering “middle-men” dealing with Turkish and Chinese companies are granted contracts rather than the Government sourcing directly from our UK companies with UK employees making high quality products at similar or lower cost.’

A redacted contracts for PPE gear that does not include basic information to enable assessment of the merits of the order


Allegations of cronyism have repeatedly been denied by Government ministers.

A fast-track lane without the usual procurement and transparency requirements was used in the first wave in an effort to secure supplies for the health service, with the department saying it needed to act in ‘extreme urgency’ during ‘unprecedented’ events.

The Good Law Project (GLP) has been calling on the Department of Health to disclose further information relating to the deals.

The non-profit organisation secured a victory in the High Court last month when the Health Secretary was ruled to have acted unlawfully by not releasing Covid contracts within a 30-day deadline.

The DHSC maintains that its protocols specify that all PPE is quality assured, meets high standards and is only distributed if it meets strict standards in line with the Government’s technical specifications.

The department holds that it has ‘taken advantage of every avenue to get PPE into the country including working with companies that have established productions and delivery routes outside of their normal business’.

It also says that ‘proper due diligence is carried out for all Government contracts and we take these checks extremely seriously’, with ‘clear Treasury guidance to ensure value for money was achieved’.

Offers not offering value for money were rejected, according to the DHSC.

The department says it recognises ‘the importance of transparency in the award of public contracts and will continue to publish information about contracts awarded as soon as possible’.

The British Government came under intense pressure to supply PPE to the health service’s frontline during the first wave


A DHSC spokesperson said: ‘We have been working tirelessly to deliver PPE to the frontline.

‘Over 8.8billion items have been delivered so far and almost 32billion items have been ordered to provide a continuous supply, which will meet the future needs of health and social care staff.

‘Proper due diligence is carried out for all government contracts and we take these checks extremely seriously.

‘All offers were prioritised based on volume, price, meeting clinical standards and the time it will take from an offer being accepted by DHSC to the supplier delivering those items.’

On a website for the firm’s parent company, China National Complete Engineering Corporation, Union Glory says it acts with ‘creation, honesty, efficiency and co-prosperity’.

Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×