A former Labour adviser who was arrested on suspicion of spying for Beijing had access to senior party politicians.
David Taylor, who was arrested in March, is married to the Labour MP for East Kilbride and Strathaven, Joani Reid.
Mr Taylor strongly denies the allegations and has been bailed under investigation by the Metropolitan Police’s counter-terrorism unit.
The 39-year-old was also a member of an elite circle of Labour’s most generous donors, known as the Rose Network, before his suspension in March.
Originally established by Sir Tony Blair under the name the Thousand Club, the Rose Network was designed to draw business figures from the City of London into the party's donor base.
Labour's own website describes the network as offering attendees a "range of events, including presentations, discussions, receptions, and Q&A sessions".
In practice, these gatherings include dinners and champagne receptions where donors can socialise directly with ministers and other frontbench politicians.
An internal party investigation included examining a donation Mr Taylor made to his wife a month before his arrest.
According to disclosures to the Electoral Commission, Mr Taylor's company, Earthcott Ltd, made a non-cash donation of £2,400 to Ms Reid for "media training".
Companies House documents revealed two businesses run by Mr Taylor were owed thousands of pounds by Ms Reid’s company, Reid Strategy Limited, in 2023.
Ms Reid was also voluntarily suspended from the party, pending an investigation, however she rejected accusations of any wrongdoing and has strongly denied any connection to China.
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In her own statement published last month, Ms Reid said she was "excited to play a full part in supporting our new Prime Minister, Andy Burnham, his Government, and in renewing Scottish Labour".
She added: "I have never been part of a police investigation, as a suspect or as a witness, and I am pleased that this has now been recognised.
"The support I have received from colleagues across the political spectrum, my constituents and my local Labour Party has been steadfast.
"I am also deeply grateful to everyone who has stood by me when it was politically easier to distance themselves. You know who you are – thank you."
Responding to new revelations about Mr Taylor, a Labour Party spokesman told GB News: “All donations to the Labour Party are registered in accordance with Electoral Commission rules.
"David Taylor was immediately suspended from the Labour Party pending investigation, upon the police investigation coming to our attention. We cannot comment further while the police investigation is ongoing."
Meanwhile, Mr Burnham handed Ms Reid back the Labour Party whip earlier this month.
“The Labour Party expects the highest standards from our elected representatives and party members," a spokesman added.
"The party assesses any alleged breaches of such standards independently of the leadership and political interference.
"Following a process conducted under Labour Party rules, Joani Reid has been readmitted to the Labour Party and has had the Labour whip restored in the House of Commons."
The case unfolds against a backdrop of mounting espionage concerns.
MI5 last year warned parliamentarians that Chinese intelligence services were "relentless" in their attempts to infiltrate and influence Westminster, including through platforms such as LinkedIn.
The prosecution of two men accused of spying for Beijing, one a parliamentary researcher, also collapsed due to the Government's reluctance to designate China as an enemy.
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