To ask His Majesty's Government what assessment they have made of the purchase of UK businesses by funds owned by the state of China; and what safeguards exist to protect national security in this situation.
Answered on
20 September 2023
As an open economy, the government welcomes foreign trade and investment, including from China, where it supports growth and jobs in the UK, meets our stringent legal and regulatory requirements, and does not compromise our national security.
The government has powers under the National Security and Investment Act 2021 (NSIA) to scrutinise and, where necessary, intervene in acquisitions of control over entities and assets in or linked to the UK that may pose national security risks. These powers apply to all acquirers regardless of nationality. The government will not hesitate to use our powers to protect national security where we identify concerns.
Further detail on investment screening activity is available in the NSIA Annual Report, which was published on 11 July 2023 and is available at: https://www.gov.uk/government/publications/national-security-and-investment-act-2021-annual-report-2023