Nuclear warning to the Chinese
New security law will put foreign firms under scrutiny
CHINA’S involvement in the UK nuclear industry is to be reviewed, a senior minister suggested yesterday.
Alok Sharma said new national security legislation would allow for the scrutiny of any foreign investment.
He told Radio 4’s Today Programme that China’s business interests would be looked at ‘in the round’.
‘We will look at all investments that are made in the UK,’ said the Business Secretary. ‘We will look at that against the criteria we have set out in the Enterprise Act, that will be set out in the national Security Investment Bill, and that will be for all investments that are made rather than picking and choosing individual countries.’
Sources cautioned that it would not be a formal review.
Mr Sharma was also asked about Huawei, the Chinese firm involved in Britain’s 5G network.
He said: ‘As a result of the initial sanctions the US has put in place against Huawei specifically, we are having a look to see what the impact would be on UK networks. There is a process ongoing, we will see what that review comes to and we will set out our next steps.’
The national Security Investment Bill, which will be brought forward when parliamentary time allows, will ensure all foreign investment, acquisitions and mergers are reviewed.
China General nuclear Power Group has invested billions of pounds in the Hinkley Point C plant, which is being built in Somerset. The state-owned firm is also seeking approval to build a nuclear reactor at Bradwell in Essex. Asked about Mr Sharma’s comments yesterday, the Prime Minister’s spokesman said the UK ‘already has significant safeguards which are in place and that will remain the case’. He added: ‘There is a particular issue in relation to Huawei and the US sanctions which have been put in place on the company.
‘The national Cyber Security Centre have been looking at that and if there is an update to be provided to Parliament we will do so before recess.’
Asked whether Chinese investment is still welcome, the spokesman said: ‘We have a hard-won reputation as one of the most open economies in the world.’
no 10 is already facing a backlash from Conservative MPs who are demanding that China be barred from UK industry amid escalating tensions. It is set to reverse its decision to allow Huawei a role in the new 5G network after intelligence agencies warned the US sanctions would cause problems for the firm.
There are also calls for the Government to expand its new sanctions regime to cover Chinese figures linked to human rights abuses in Hong Kong.
Sir Iain Duncan Smith, a former Conservative Party leader, told The Times he supported ‘a campaign for zero participation’ by Chinese companies in critical UK energy infrastructure.
‘We’ve got to rethink our whole energy strategy now,’ he added.