New government website warns tech firms over China risk
The government has launched a new website warning British tech firms about the risks of doing business with Chinese companies.
The site, which carries the slogan “China. See the Potential. Know the Challenge.”, is designed to help UK firms negotiate the ethical, legal and commercial challenges when expanding into China or accepting investment from Chinese companies.
The government said the guidance, which was developed in response to demand from the sector, will help support “safe and appropriate” collaboration between the two countries in digital and tech.
“The UK is determined to support our businesses to engage with China in a way that reflects the UK’s values and takes account of national security concerns,” said Caroline Dinenage, minister for digital and culture.
It comes after ministers unveiled new legislation earlier this month that will enable the government to intervene in takeovers by hostile states.
The new laws, which will apply to deals in sectors deemed of strategic importance, follow growing calls for greater scrutiny over transactions that could threaten national security.
The UK has already banned Chinese tech firm Huawei from building 5G networks, while concerns were raised earlier this year about Chinese involvement in Britain’s Imagination Technologies.
In addition to case studies, the new website offers guides on how to carry out due diligence and links to organisations that can provide further support.
A section on ethical concerns also contains stark warnings about the risk of doing business with China.
“While there are many opportunities, there is a risk that your company’s technology could be used to violate human rights, posing a significant risk to your business’s reputation,” it reads.
It lists concerns including China’s use of mass surveillance, its repression of ethnic minorities in Xinjiang and elsewhere and automated media and internet censorship.
The campaign will likely add fuel to the fire amid escalating trade tensions between the west and China.
A pro-China business group this week warned the UK will lose billions of pounds in investment if it does not reverse its growing hostility towards Beijing.