China firm on same banned list as Huawei makes British police radios
POLICE radios used by tens of thousands of officers – including those protecting Downing Street – are made by a company whose Chinese owner has been banned by Donald Trump over national security fears.
Cambridge-based Sepura, which is owned by Hytera, makes handsets used by police officers during operations including protecting members of the Royal Family, politicians and sensitive Government locations.
Hytera, in which the Chinese Communist Party has a stake, is one of five Chinese companies – including controversial telecoms firm Huawei – which have been blacklisted in the US, barring them from government contracts.
The Trump administration fears Hytera’s technology could be used by the Chinese government for espionage. It says Chinese companies are ‘legally required to co-operate with their intelligence services’.
Other companies blocked from selling kit to agencies such as the FBI include CCTV firms Hikvision and Dahua, and telecoms company ZTE. The US sanctions were formalised on Tuesday – the same day Boris Johnson barred Huawei from operating large chunks of Britain’s 5G network.
Hytera told The Mail on Sunday the Trump restrictions did not stop Sepura selling kit to federal agencies through its US division PowerTrunk because of a deal struck with the Department of Homeland Security in July 2018.
But the UK Government was last night urged to carry out a fresh review into Sepura and its use by the police as scrutiny grows into vital British assets in the hands of the Chinese.
Matthew Henderson, Asia studies director at the foreign policy think- tank the Henry Jackson Society, said: ‘If there is any question whatsoever that equipment provided to our police and Armed Forces would compromise their security in any way, this demands urgent investigation and necessary action. Our American allies are unlikely to have banned this firm without good cause.’
Former Foreign Secretary Sir Malcolm Rifkind said the Government should review all Chinese takeovers of British businesses that have national security implications, such as Sepura.
He said: ‘China has changed a lot in the last few months, so we need to have fresh look. The Government should treat it as a serious responsibility. They have to look at a particular company, revisit it and see whether you come to the same judgment as last time.’
Sepura traces its roots back to 1896 when William Pye created a company called Pye that made scientific instruments.
During the First World War, it made equipment such as gun sights. It then began making wireless receivers and by the Second World War, it was helping the Armed Forces to communicate and providing radar systems. After the war, it began making radios and then TV sets for the public.
In 1967, it was taken over by Dutch electronics company Philips, which later merged their radio communications businesses. They were sold on and broken up, creating Sepura in 2002.
Last year, Sepura won a major contract to replace 32,000 radios for the Met Police. The company was bought by Hytera in 2017. The deal was reviewed because of Sepura’s links to the police and military, the first time in nine years that a foreign takeover had been reviewed for national security reasons.
The £75 million deal was given the green light by then Business Secretary Greg Clark just a few weeks later. It was allowed after Hytera agreed to assurances, including keeping a British person with high-security clearance on the board and agreeing to random checks from the Home Office, Ministry of Defence or GCHQ.
Hytera was founded by entrepreneur Chen Qingzhou, who owns 52 per cent of the company, but the Chinese state has a two per cent stake. A US court ruled earlier this year that Hytera must pay $765 million over claims it stole trade secrets from US rival Motorola Solutions. Hytera is counter-suing.
A Government spokesman said: ‘We are aware of the impending ban on Hytera products in the US and we continue to monitor the situation with regard to Sepura.’
Sepura declined to comment. Hytera did not directly respond to questions about national security concerns.
‘US allies wouldn’t ban firm without good cause’