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The article you shared from BBC Panorama discusses China’s extensive investments in UK businesses and projects, totaling approximately £45bn ($59bn) in recent years, and how some of these investments allowed China access to sensitive, potentially military-grade technology.
### Key Points:
– **China’s Strategic Investment Directive (2015):** Following this state directive, China aggressively pursued investments in high-tech sectors to become a global leader, especially in 10 key industries covered by the “Made In China 2025” plan, including aerospace, electric vehicles, robotics, and semiconductors.
– **The UK as a Prime Investment Target:** Relative to population and economy size, the UK has been the leading G7 nation attracting Chinese investment, making it a significant gateway for technology transfer from western advanced industries to China.
– **Imagination Technologies Case Study:** A UK semiconductor design company based in Hertfordshire, specializing in chip design for smartphones and computers.
– Purchased in 2017 by Canyon Bridge, a fund with Chinese state-linked backing.
– After the acquisition, the former CEO Ron Black was asked to oversee the transfer of technology and expertise to China, including replacing UK engineers with Chinese engineers.
– He resisted, sought help from the UK government, but was largely told it was a commercial matter.
– Eventually resigned amid concerns over the military potential of the technology and was later unfairly dismissed.
– Post-resignation, Imagination’s technology was transferred to China.
– **Government Response and Oversight:** The deal was vetted by the UK government, which initially allowed the investment to proceed. After concerns were raised, the government started to take an interest but found limited means to intervene effectively.
– **Official Statements:**
– Imagination Technologies insists its technology has not been used for military purposes and complies with export laws.
– Canyon Bridge states it led the deal independently.
– China Reform (linked to China’s State Council) did not respond to the allegations.
– The Chinese Embassy emphasizes compliance with local laws and contribution to local development.
### Implications:
– This investigation highlights concerns about how foreign state-backed investment, especially from strategic competitors like China, can lead to technological and knowledge transfer that may enhance their military capabilities.
– It underscores the challenges governments face in balancing open investment policies with national security risks, especially in sectors with potential dual-use (civilian and military) applications.
– The case of Imagination Technologies illustrates how state-backed investors may use commercial acquisitions to gain access to expertise and intellectual property, which might be repurposed for defense.
If you want, I can help summarize this further, provide more context on “Made in China 2025,” or explore UK’s current policies on foreign investment and technology security. Just let me know!
Read the full article from The BBC here: Read More
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