Prosecutors have admitted that China is spying on Parliament despite dropping a case against suspected agents acting for Beijing.

A senior figure in the Crown Prosecution Service (CPS) told an MP the research group she led was 'targeted by China' as a means of 'obtaining information' on Government policies.

Chief Crown Prosecutor Frank Ferguson insisted that the CPS took espionage 'very seriously' as offences targeting MPs 'threaten the democratic process and public service'.

But he told Tory security spokesman, Alicia Kearns MP, that he had concluded that the charges of spying had to be abandoned against former parliamentary aide Chris Cash, 30, and British teacher Chris Berry, 33.

'It has now been determined that the evidential standard for the offence indicted is no longer met,' Mr Ferguson wrote in a letter.