A Chinese state-controlled investment company is trying to seize control of British based Imagination Technologies.
A number of senior MPs have been alerted to the move and have urged Boris Johnson to block the takeover on the grounds of risks to national security. GCHQ and the National Cyber Security Centre have also been informed.
Imagination makes graphic processing units for clients including Apple and Samsung. They employ 600 people in the UK and there are concerns the company could be relocated to China.
The development comes just a few weeks after the Trump administration blocked a Chinese company from acquiring a US technology company.
Meanwhile, China’s investment in Indian has recently reached $26 billion with little government scrutiny. Chinese companies have invested mostly in Indian pharmaceutical and technology sectors.
Governments across the globe should restrict China’s ability to invest during the pandemic. If they don’t, we could see hundreds of companies relocate to China in the months ahead.