What critical infrastructure does China own in the UK?
Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailGet our free View from Westminster emailAs government officials and British Steel staff race to save its blast furnaces after what ministers believe was a plot to sabotage the Scunthorpe plant by its Chinese owners, there are more eyes than ever on Chinese investments in the UK. MPs were recalled to Parliament on Sunday to pass emergency legislation allowing the government to seize control of British Steel after Jingye, the Chinese owner, appeared to be gearing up to turn off the blast furnaces at the site. But British Steel isn’t the only critical infrastructure that China has a stake in. Nuclear power The China General Nuclear Corporation (CGN) was an initial investor in the Hinkley Point C nuclear power station, giving them a 33.5 per cent stake. But they halted funding in 2023 amid mounting tension between London and Beijing, meaning its one third stake has been receding in recent years. In 2016, CGN was charged by the US government with nuclear espionage, resulting in an employee being sentenced to two years in prison. The 17-page indictment accused the company and its employees of having unlawfully conspired to develop nuclear material in China without US approval and “with the intent to secure an advantage to the People’s Republic of China”.China was also involved in the Sizewell C nuclear power station, but in 2022, the UK government forced Beijing out, spending £679m of taxpayer cash as part of an exit deal. Heathrow Airport The China Investment Company (CIC), a state-owned investment firm with global assets worth around £1.1trn, has a 10 per cent stake in Heathrow airport, Britain’s key aviation hub. The airport is critical for the government’s plan for growth, after ministers approved the building of a third runway earlier this year. Utilities The CIC has a 10.5 per cent stake in National Grid’s gas distribution network, after the gas and electricity company agreed to sell a majority stake in its gas pipe network in 2016. The CIC also holds an 8.7 per cent share of Thames Water. In February, it was revealed by the Financial Times that UK security services are taking part in a review of China’s role in UK energy infrastructure, with MI5 said to be looking at whether the use of Chinese technology - such as solar panels or industrial batteries - could pose a threat to national security. Universities Top British universities have received tens of millions of pounds from Chinese organisations, The Independent revealed earlier this year, as experts warn the UK is increasingly becoming a target for Beijing as it looks to increase its global influence and stifle criticism.A series of freedom of information requests to Russell Group universities – an association of the top 24 research universities in the UK – found they received nearly £50m from Chinese sources in the past four years. Oxford and Cambridge received the most donations, gifts, grants and research funding from Chinese sources. Oxford University brought in £24m from 2020 to 2024, while Cambridge received between £12m and £19m in the same period. This included money from Huawei Technologies and its subsidiaries to Cambridge after it was banned from involvement in Britain’s telecommunications infrastructure in July 2020.Real estate In 2022, the Guardian revealed that Beijing owns a vast network of UK real estate - owning more than 250 properties across Britain via dozens of companies - including distribution centres that are central to the flow of food and goods across the south-west and south-east of England and the Midlands. The CIC is thought to have spent at least £580m on properties in the UK. Telecommunications While Chinese-owned company Huawei was initially allowed to contribute to Britain’s 5G network, the UK government has since banned its use and is phasing out the company’s equipment amid fears use of the technology could compromise UK national security.In 2020, the government passed a law banning British mobile providers from buying new Huawei 5G equipment, and forcing them to have removed all Huawei kit from their networks by 2027.
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