November 21, 2022
2 mins read

China irked by blockade of microchip producer takeover

The UK government said it considers the final order necessary and proportionate to mitigate the risk to national security…reports Asian Lite News

China has voiced displeasure over the Rishi Sunak government’s decision to reverse the acquisition of the UK’s largest microchip producer by a Chinese firm, citing national security concerns.

The UK government this week ordered China’s Wingtech Technology company to undo its acquisition of Britain’s biggest microchip factory, a year after the deal had been closed, according to media reports. The decision came even as the transaction in question had already been cleared by two previous security reviews.

Answering a question on the development, Chinese Foreign Ministry Spokesperson Mao Ning said the decision sends a clear signal that the UK is closed for business.

“The UK has overstretched the concept of national security and abused state power to directly interfere in a Chinese company’s normal investment cooperation in Britain,” Mao said during a press conference on November 18.

Mao said the UK government’s decision violates the lawful rights and interests of the company concerned, as well as the market economy principles and international trade rules.

“We firmly oppose the move and call on the UK to respect the legitimate rights and interests of Chinese companies and provide a fair, just and non-discriminatory business environment,” he added.

Earlier this week, the UK’s Business and Energy Department ordered Chinese-owned firm Wingtech Technology to divest its 86 per cent share in UK’s largest microchip manufacturer Newport Wafer Fab.

The UK government said it considers the final order necessary and proportionate to mitigate the risk to national security.

“The Secretary of State considers that a risk to national security relates to: technology and know-how that could result from a potential reintroduction of compound semiconductor activities at the Newport site and the potential for those activities to undermine UK capabilities,” the order read.

It added, “The location of the site could facilitate access to technological expertise and know-how in the South Wales Cluster (“the Cluster”), and the links between the site and the cluster may prevent the cluster being engaged in future projects relevant to national security.”

This report comes amid the growing decoupling of western countries from China, especially on the technological front.

More and more countries have expressed concern about the risk posed by the Chinese acquisition of advanced tech and theft of intellectual property in foreign countries.

ALSO READ-Jaishankar takes aim at Pak, China

Previous Story

ASEAN parliament chiefs gather in Cambodia

Next Story

Canada’s Brampton gets first turbaned Sikh as Dy Mayor

Latest from -Top News

India, US Step Up Trade Talks

The development comes in the backdrop of the new US ambassador Sergio Gor taking charge in the US embassy is New Delhi….reports Asian Lite News India and the United States are progressing

Lanka Marks Next Phase of Indian Housing Drive

Phases III and IV of the Indian Housing Project highlight India’s commitment to supporting and empowering Sri Lanka’s Indian-origin Tamil community….reports Asian Lite News Sri Lankan President Anura Kumara Dissanayake on Sunday

China’s Grab for Africa

China’s investments aim to strengthen its geopolitical influence and its high-tech manufacturing sector in Africa…reports Asian Lute News China is further consolidating its dominance in the rare earth elements sector by expanding

Pakistan Courts in Peril

The question now is whether Pakistan’s courts can continue to function as guardians of the law, or whether they will be reduced to instruments of control…reports Asian Lite News Pakistan judiciary’s independence
Go toTop