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£36.95BBC Verify’s article on Chinese investment in the UK economy, specifically focusing on the Scunthorpe steel works, has brought concerns about potential security risks. Formerly owned by China’s Jingye Steel, the British Steel plant now falls under UK government control amidst fears that the Chinese owners were planning to dismantle the blast furnaces and utilize the rolling mills to process imported Chinese metal. This situation has sparked discussions about Chinese investment in the UK and the implications it may have.
Data from the Office for National Statistics indicates that Chinese investment in the UK in 2023 totaled around £4.3bn, a small portion of the larger picture of overseas investment in the British economy. However, due to potential underrepresentation and lack of transparency, estimates from independent sources like the American Enterprise Institute suggest a much higher figure of around £82bn spanning the period between 2005 and 2024. This places the UK as the third-largest national destination for Chinese investment after the US and Australia.
Chinese firms have made significant investments in various sectors within the UK, from energy and transportation infrastructure to private businesses and sports clubs. For instance, Li Ka-shing’s investment group has stakes in UK Power Networks and Northumbrian Water Group. Additionally, Chinese companies are active in the nuclear power sector, with investments in the Hinkley Point C and proposed Bradwell B sites. The battery sector has also seen substantial Chinese investment, particularly in projects like the Minety battery site and EV manufacturing companies.
While there are concerns about potential threats posed by Chinese investments in critical UK infrastructure, experts like Grace Theodoulou highlight espionage and control risks. Chinese law mandating alignment with Communist Party directives and intelligence efforts raises security concerns. However, some analysts argue that sabotaging UK infrastructure would not align with Chinese investors’ financial interests, as it could lead to value collapse and government appropriation. As debates continue on the implications of Chinese investments in the UK, there remains a distinction between investments in vital infrastructure and consumer brands owned by UK firms
Read the full article from The BBC here: Read More
