MPs Warn UK Must Protect Key Tech Assets From Hostile Foreign States

A group of MPs are calling for the law to be tightened up to prevent hostile states from taking over UK-owned companies.

The Commons Foreign Affairs Committee says Britain must strike a balance between offering an open and attractive business environment and falling victim to foreign influences which may damage national security.

Widespread national concern forced the Government to U-turn over putting Huawei at the heart of 5G infrastructure but the Chinese State-owned company's buyout of a small British tech company eight years ago hardly made a ripple.

MPs and industry experts believe that should be changed.

Foreign Affairs Committee Chair Tom Tugendhat MP told Forces News: "This bill is so important to make sure people know that investments they make in the UK are going to be entirely fairly dealt with.

"But also that the British people know that those investments will not undermine our national security."

The National Security and Investment (NSI) Bill will ensure investment bids are not just assessed on how much cash a buyer is offering, but on national security terms too.

"It's certainly true that China's backing of state-owned enterprises gives them a depth of economic power that many other countries simply don't match, but there are actually many other countries, too, that are involved in this.

"The entire world is late to this... What we now need to do is make sure we tighten up and this is an extremely important piece of legislation that the Government is bringing forward."

The committee says the Government has taken an “open and discursive approach” to this inquiry.

They now hope their proposed amendment to the NSI Bill will be carried when it goes through the Commons tomorrow.