A British judge ruled this week that job seekers from “hostile” countries are prohibited from holding sensitive positions, stating that this is not a form of racism but a necessary measure to address potential espionage risks.
The employment arbitration tribunal in the UK has forbidden individuals from countries such as China, Russia, North Korea, and Iran from engaging in certain defense or security-related work, citing that this practice does not amount to racial discrimination due to the security threats posed by these nations.
The ruling stemmed from a lawsuit filed by Chinese scientist Tianlin Xu against the British artificial intelligence company, Binary AI, alleging that the company refused to hire her due to security concerns, which she claimed was tantamount to racial discrimination.
According to the judgment released by the tribunal on June 17, Binary AI, a small startup founded by James Patrick-Evans with only five employees at the time of the recruitment incident that sparked the lawsuit.
The company utilizes artificial intelligence technology to identify hidden backdoors in software used by various organizations to prevent infiltration by hackers from hostile countries supported by their respective governments.
In September 2023, Binary AI signed contracts with the Defence Science and Technology Laboratory and other agencies under the UK Ministry of Defense. The contract required the company’s employees to undergo security clearance as their ultimate clients included the defense departments of the US and the UK.
Patrick-Evans, in compliance with the contract requirements, advertised for a chief artificial intelligence researcher but ultimately chose another candidate over Xu.
The ruling by the arbitration tribunal revealed that Patrick-Evans had consulted a national security liaison about the possibility of hiring a Chinese national for the role. In one email reply, it was stated, “We cannot currently sponsor any Chinese nationals for work related to national security (regardless of their length of residence in the UK). The work you are engaging in is essential to our community and might involve fairly sensitive areas, so I would strongly advise against employing Chinese nationals. Sorry, this email is blunt and the stance may be firm.”
Xu attempted to sue Binary AI on grounds of racial discrimination, arguing that the security clearance issue was merely an excuse by the company to reject her based on her Chinese nationality.
One of her main accusations was based on an email from Patrick-Evans dated October 28, 2023, where he stated, “However, I’ve sadly decided not to progress with your application purely because of your nationality.”
“As a company, we work closely with Western governments in sensitive areas and wish to continue doing so. At present, our company’s scale isn’t enough to ensure the segregation and security controls required for employing someone of your nationality,” the email went on to elaborate.
The tribunal dismissed Xu’s complaint.
London employment arbitration judge Richard Baty explained that there were three other reasons why Binary AI ultimately hired another applicant: Firstly, the selected candidate was not only a British citizen but also had relevant work experience and previous security clearance.
Secondly, Xu’s salary expectation was significantly higher than the candidate eventually chosen by the company.
Lastly, Patrick-Evans conducted additional background checks on Xu’s social media accounts, leading to concerns regarding some of her capabilities.
Baty mentioned that Patrick-Evans did not mention these details in the email hoping to “tactfully decline her.” He chose a reason not related to her abilities or conduct but rooted in the real requirements of the client, absolving Xu of any fault.
The judge also emphasized that the company’s refusal to hire Xu based on her nationality not being able to obtain security clearance was not discriminatory.
“This reasoning would apply to anyone whose nationality couldn’t secure security clearance (including Russian, North Korean, Iranian, and Chinese nationals). It’s not about nationality itself,” he stated.
Baty wrote in the ruling, “The UK government and its Western allies within the ‘Five Eyes’ have been subjected to continued attacks from numerous malicious groups, primarily backed by state-supported hacker groups from countries such as North Korea, Russia, China, and Iran.
“These hacker groups have attempted to gain access to ‘backdoors’ in certain software critical to the UK’s infrastructure pillars, like the 5G telecommunication network, National Health Service (NHS), power plant control systems, and water infrastructure systems.
“Therefore, ensuring the security of the software driving these systems is paramount in terms of verification, control, and protection.”
“Backdoors have a devastating impact on the security of UK sovereignty and economic well-being,” the ruling continued, “allowing foreign governments to monitor the UK’s most sensitive data and steal confidential information and trade secrets. Detecting hidden backdoors within software is exceedingly challenging.”