Ministers water down rules on export of quantum tech

A CRACKDOWN on exports of British quantum computer technology has been watered down by ministers after warnings that it could lead to UK-based firms fleeing overseas.

The Department for Business and Trade has issued a general licence allowing quantum computer technology to be sold to dozens of countries including the US, Japan, Australia and European Union states. The licence was issued last week – just days before new laws were due to come into force requiring quantum companies to obtain permission before transferring or selling any technology overseas.

The crackdown, revealed by

earlier this month, applies from Monday and is designed to prevent quantum technology falling into the hands of hostile military powers.

However, its extent blindsided the nascent industry and led to concerns that companies may be forced to move overseas to escape the regulations.

One affected company said the rules would have stopped it from communicating with manufacturers based abroad or sending data to overseas subsidiaries. Quantum Motion, which has been backed by a taxpayer tech fund and last year raised the biggest ever investment round in a British quantum computing company, said overseas investors had suggested the company may have to move abroad.

“I don’t think they appreciated the impact,” James Palles-Dimmock, Quantum Motion’s chief executive, said.

He added: “The knee-jerk reaction from all of my foreign investors was: ‘Should we be looking elsewhere, how do we make sure we’re in the best market for this?’.” He said the late granting of the licence “now gives a great degree of certainty” allowing the company to keep operating as before.

Quantum computers are seen as crucial to national security because of their potential for code-breaking. The machines use the properties of quantum physics to make calculations far quicker than conventional computers.

A government spokesman said: “The updated list includes new controls on specific emerging technologies which the UK, along with several other like-minded countries, has committed to implement to strengthen our national controls.”