Over the past decade, rampant Chinese investments in the UK may have effectively handed over military grade technology to China.

Yet when one tech boss raised the alarm to the British government, he was told that nothing could be done.

The 2010s was a surge of Chinese investment in the UK. The £45bn Chinese spending spree included the purchase of a firm that developed technology with potential uses for drones and missiles. An investigation by BBC’s Panorama will reveal how the last Tory administration (2010-2024) did not intervene, instead standing by the sidelines.

A former British intelligence chief has warned that the UK was too permissive in allowing investments that carry security risks, without addressing the question of how to trade with China:

Former GCHQ chief Sir Jeremy Fleming said:

This is the trillion-dollar question […] My personal view is that we have been far too free in allowing access to strategically important industries in science and technology.

Canyon and Imagination deal

The concerns centre on Imagination Technologies, a Hertfordshire-based tech-firm.

Having lost a major contract in 2019, the equity firm Canyon Bridge brought out the company.

Canyon Bridge has one investor: Yitai Capital, owned by the Chinese state-linked body, China Reform.

Imagination’s engineers made semi-conductors used for a range of civilian tech like smart phones. As the BBC reported:

A potential buyer would be buying into this expertise. What is more, the algorithms behind its technology, although developed for other products, could be put to military use in missiles and drones.

Imagination’s CEO states that at the time he was told that the takeover was purely profit-driven. Later, the Chinese investors told him they were appointing new directors and would focus on leveraging its expertise and technology.

Black warned the British government, but officials said there was little they could do.

Concerned about the potential transfer of military-grade technology, Mr. Black resigned. Following his departure, he claims, the UK government began to take notice, and China Reform abandoned its efforts to appoint new C-suite directors.

Although Mr Black withdrew his resignation he was dismissed by the firm. He and sought legal recourse for unfair dismissal through an employment tribunal which ruled in his favour.

The firm involved and the Chinese embassy deny any wrongdoing. The Foreign Office said it had not published its full audit, citing security reasons and non-disclosure protocols.

Featured image via Getty Images/Upsplash

By Joe Glenton

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