The British government is pressing ahead with plans to tighten screening of foreign investments by China and other countries amid concerns that such flows could compromise national security.
The election manifesto of the ruling Conservative party pledged that Prime Minister Theresa May would ensure foreign ownership of companies controlling “important infrastructure” would not undermine British security.
After a disastrous election performance last month, similar promises have been abandoned. But the plan for a tighter takeover regime is one manifesto idea that will be taken forward, government aides have confirmed. It reflects a faultline within the ruling party about how to deal with Beijing. When David Cameron was prime minister, the UK courted Chinese investment, even arranging for the Queen to host President Xi Jinping in 2015.