ALBAWABA – A spokesperson for the United Kingdom’s (UK) government said Thursday that Britain will continue to assess potential security risks as the UK weighs responding to America’s new China investment policy.
United States (US) President Joe Biden signed an executive order on Wednesday that authorizes the US Treasury Secretary to prohibit or restrict American investments in Chinese entities in high-tech sectors.
These restrictions encompass investments in semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems, according to Reuters.
Biden’s order sparked outrage from China, whose government vowed to protect its interests against the new US investment restriction policy, warning it will disrupt industry supply chains.
A spokesperson for Prime Minister Rishi Sunak's government said the executive order gave important clarity on the American approach as the China-US tech war escalates.
"The UK will consider these new measures closely as we continue to assess potential national security risks attached to some investments," he said.
With caution, UK weighs responding to America’s new China investment policy
London has recently been trying to stabilise ties with Beijing following a period of turbulence over security rules in Hong Kong and alleged human rights abuses against Uyghur Muslims in Xinjiang, Reuters reported.
Foreign Secretary James Cleverly set out Britain's new approach in April, saying it would seek to protect itself by limiting national security threats posed by China. All the while engaging in areas such as trade, investment and climate change.
The UK and US signed a new agreement to strengthen the historical security alliance between the two countries in June. The agreement entails deepening economic ties in areas such as advanced technologies, clean energy and critical minerals.
Official data shows that China is not a significant destination for British foreign investment, with the figure standing at $13.6 billion (GBP 10.7 billion) at the end of 2021. Whereas UK investments in the US amount to $589.83 billion (GBP 461.4 billion). Meanwhile, British investment in Hong Kong stood at $99.20 billion (GBP 77.6 billion), according to Reuters.
