Amid growing unease over foreign ownership of critical infrastructure, Chinese investment in the United Kingdom has come under renewed scrutiny. Emergency legislation was rushed through Parliament on Saturday as ministers moved to safeguard British Steel’s blast furnaces in Scunthorpe, amid suspicions that its Chinese owners, Jingye Group, were preparing to shut down operations. The move reflects a wider concern about Beijing’s involvement in key sectors, prompting a deeper assessment of China’s influence across UK assets.
++ Nigel Farage defends stance amid Elon Musk dispute over Tommy Robinson
In the energy sector, Chinese investment has seen a notable retreat. The China General Nuclear Corporation (CGN), once a major backer of the Hinkley Point C nuclear power station, withdrew funding in 2023, partly due to rising diplomatic tensions. CGN, which held a 33.5 per cent stake, had already faced controversy after being accused of nuclear espionage by the United States in 2016. The UK also forced CGN out of the Sizewell C nuclear project in 2022, spending £679 million of taxpayer money to remove Beijing’s involvement.
Elsewhere, China’s state-run investment arm, the China Investment Corporation (CIC), maintains a 10 per cent stake in Heathrow Airport, a vital part of Britain’s aviation infrastructure. The CIC also owns significant portions of National Grid’s gas distribution network and Thames Water. These holdings have prompted a national security review, with MI5 reportedly investigating whether Chinese technology, such as solar panels and industrial batteries, could pose a threat. Concerns extend to education as well, with Russell Group universities receiving nearly £50 million from Chinese sources in recent years. Oxford and Cambridge alone brought in millions from entities including Huawei, even after the company was banned from the UK’s telecoms network.
++ Princess Diana’s iconic wardrobe set for historic auction
China’s presence in UK real estate is also substantial. A 2022 investigation by The Guardian found that Beijing owns over 250 properties nationwide, including key logistics hubs essential to food and goods distribution. In telecommunications, Huawei has been progressively phased out since 2020 due to security concerns, with mobile providers barred from purchasing new Huawei 5G equipment and ordered to remove existing kit by 2027. As the UK reassesses its economic ties with China, pressure is mounting on ministers to prioritise sovereignty and security over investment.
