Chinese investment in Britain is under the microscope

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 71 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

Chinese investment in Britain has been falling for a while, and that trend is unlikely to reverse. The government has yet to work out what replaces it

Save time by listening to our audio articles as you multitaskOn July 20th Kwasi Kwarteng, the business secretary, used the act to veto a deal for the first time. Beijing Infinite Vision Technology, a Chinese firm, was prohibited from licensing vision-sensing technology from the University of Manchester, on the basis that the intellectual property could be used in ways “which may present a national-security risk”.

Mr Kwarteng’s decision also suggests a tougher line on another, much more significant investment. The government is probing the acquisition of Newport Wafer Fab , Britain’s largest maker of semiconductors, on national-security grounds. The firm was bought in 2021, when the pandemic had brought it to the brink of closure, by Nexperia, a Dutch outfit itself owned by Wingtech, a Chinese firm. After much delay and flip-flopping, the government’s decision is due in early September.

The objections to the takeover are threefold. The first is that China, which is racing to build up its own semiconductor industry, should not have access to’s know-how. The chips made at Newport are the basic but essential kind that control the flow of electrical power; they are used in everything from phone chargers to cars to light switches. Newport’s forte is to produce a high volume of these chips with extremely low error rates; that is expertise worth having.

The second concern is supply-chain security. Critics point out that Wingtech is building a semiconductor fab in Shanghai; when that plant reaches capacity, the company might be inclined to shift production to China. Europe’s reliance on Russia for gas has highlighted the risks of depending on potential adversaries for inputs. “There are no plans to offshore production from Newport,” says Toni Versluijs, Nexperia’s general manager in Britain.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Your grubby clients take money from anyone. Cease your hypocritical posturing.

Why isn't russian?

Translate this !

Chinese & Russian investment needs to always be under the microscope.

About bloody time!

Brits should force exit of all Chinese investments, return their money, you don’t need it

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canyon Bicycles scores new investment from LeBron James & Maverick CarterThe NBA legend’s strategic investment in Canyon underscores his demonstrated personal and financial interest in bikes. Good news for tall riders andykeetch ?
Source: bikerumor - 🏆 65. / 61 Read more »

‘Gumming up’: unwanted debt from buyout boom stuck at investment banks\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Source: ftenergy - 🏆 47. / 63 Read more »

‘Gumming up’: unwanted debt from buyout boom stuck at investment banks\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Source: FT - 🏆 113. / 51 Read more »

Inside the Kuwait Investment Authority: ‘It’s chaos there now’\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Source: FT - 🏆 113. / 51 Read more »