A Union Jack flag flutters in front of the Houses of Parliament in London, Britain, November 5, 2019.
"Chinese recruitment schemes have tried to headhunt British and allied nationals in key positions and with sensitive knowledge and experience," the government said.
The arrest of the young researcher, who denied being a spy, has led to calls by British members of parliament for a tougher stance.
Sunak told parliament that he accepted the report and recognised that it identified areas where "we can do better".
Last year, MI5 issued a rare security alert, warning members of parliament that a suspected Chinese spy was "involved in political interference activities" in Britain.
Persons:
Hannah McKay, Sunak, Andrew MacAskill, Kylie MacLellan, Michael Holden, Christina Fincher
Organizations:
REUTERS, CAN, Intelligence, Security Committee, Thomson
Locations:
London, Britain, China, Beijing