Government blocks Chinese tech deal on national security grounds | Business News

The government has blocked the acquisition of intellectual property (IP) rights by a foreign company for the first time under new national security powers.

Business secretary Kwasi Kwarteng announced on Wednesday evening that he had issued an order preventing Beijing Infinite Vision Technology (BIVT) from purchasing vision sensor technology from the University of Manchester.

An agreement would allow China-Company-based facility to develop, test, manufacture, use and sell licensed products.

“There is a possibility that technology can be used to build defenses or that technology can manifest
Decisions announced by the government pose a national security risk to the UK.

It marks the first time sales to foreign buyers have been blocked under the National Security and Investment Act (NSI), which went into effect earlier this year.

It gives the government the power to interfere with IP takeovers or sales that could compromise UK national security.

It requires businesses and investors to notify the government of some acquisitions across 17 sensitive sectors of the economy.

The move was inspired by the security service’s concerns about China’s threat to national security through mergers and acquisitions but includes transactions involving British companies across the country. Global.

A string of transactions since then have been brought up for scrutiny.

The highest profile involved the £63m sale of a major British chipmaker to a Chinese-owned company.

Buying Newport Wafer Fab by Nexperia was expected to end early this month but the poll has been postponed.

The investigation was launched after a former head of the National Cyber ​​Security Center alleged that the deal posed a greater threat to UK interests than Huawei’s involvement in 5G networks.

Sky News also revealed this month how sell a mobile phone technology provider Part owned by Russian billionaire Roman Abramovich has been delayed due to NSI screening.

BIVT and the university have yet to comment on Mr. Kwarteng’s ruling.

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