London: China has invested more than £45 billion in British companies and projects since the early 2000s, and new findings suggest that some of these deals allowed Beijing to gain access to high level technology with possible military uses.
A BBC Panorama investigation, based on exclusive access to data from the US research group AidData, shows that the United Kingdom became the top destination among G7 nations for Chinese state-backed investments when measured against its population and economic size.
Much of the investment surge followed China’s 2015 national strategy known as Made in China 2025, a plan aimed at helping the country become a world leader in key advanced industries such as aerospace, robotics, electric vehicles and semiconductor design. Experts say this long term strategy meant China sought out foreign firms with cutting edge skills to boost its own capabilities.
Some of the investments were commercially driven, but others closely aligned with Beijing’s strategic goals, according to AidData’s executive director Dr Brad Parks. What worries UK security experts is that several British companies operating in sensitive fields were acquired or funded by Chinese backed organisations without strong scrutiny.
A former head of GCHQ told Panorama that the UK had been “far too free in allowing access to strategically important industries,” especially in areas linked to defence or advanced computing.
One of the clearest examples raised by the investigation is Imagination Technologies, a well known semiconductor design company based in Hertfordshire. The firm develops the designs used in the tiny circuits that power smartphones, computers and many modern digital devices. After a Chinese backed private equity fund took control of the company in 2017, concerns grew that Beijing could gain access to high performance chip technology that might be adapted for military use.
Other cases highlighted by researchers show similar patterns, where Chinese ownership or investment resulted in the movement of high value skills, patents and know how to China either through licensing or restructuring.
The UK government has said that foreign investment remains important for economic growth but also acknowledges the need for tighter security screening. New rules introduced in recent years require closer checks on investments in defence, energy, telecommunications and semiconductor sectors. Ministers have also said that any future Chinese investment in sensitive areas must meet a “high trust bar.”
Analysts say the Panorama findings underline the need for clear policies that balance economic benefits with national security. They also warn that China’s long term industrial ambitions mean the competition for advanced technologies will only intensify.
The BBC investigation adds pressure on the government to review past deals and ensure stronger protection for critical British industries, especially those that could influence the future of defence and global technology development.