The UK government has today said it will “closely” consider recent measures from President Joe Biden aimed at restricting investment into the Chinese tech sector.
The US president on Wednesday signed an executive order that gives the Treasury secretary powers to restrict American investment into Chinese firms operating in the semiconductor, microelectronic, quantum and AI sectors for national security purposes.
In response to the decision, a spokesperson for Prime Minister Rishi Sunak said: “The UK will consider these new measures closely as we continue to assess potential national security risks attached to some investments.”
The spokesperson noted that Biden’s decision provided important clarity on the US government’s approach as tensions grow between the West and China.
The UK government has made clear its desire to grow its own science and technology capabilities, with semiconductors, quantum and AI all considered priority areas.
Ensuring resilience in semiconductor supply chains in particular has been highlighted, following concerns from industry members that the UK is at risk of falling behind in a critical area.
It comes as semiconductor technology has become a lightning rod for geopolitical tensions.
Last year, the British government blocked the acquisition of Wales-based microchip company Newport Wafer Fab by Nexperia – a Dutch subsidiary of the partially state-owned Chinese firm Wingtech – after a lengthy review.
The final order came under the National Security and Investment Act. While the Newport Wafer Fab decision demonstrated a tough position from the government on protecting domestic chip firms, the acquisition of Cambridge-based Flusso by a company revealed by UKTN to be based in Shanghai, was cleared despite calls from MPs to further scrutinise the deal.