Bill to protect UK against harmful foreign investment becomes law

2021-04-30 16:52

In a move akin to calling the fire brigade after your house has burned down, the UK government today announced the passage of a bill that would afford it powers to intervene in potentially hostile direct investment.

The National Security and Investment Bill, which was introduced last November and has since received royal assent, gives the government powers to scrutinise, alter, and block transactions where there is a risk to national security.

"In a statement, business secretary Kwasi Kwarteng waxed lyrical about the importance of protecting national security, saying:"This historic Act will ensure we are better equipped to protect our citizens from the small number of foreign investors that seek to do us harm.

"The UK faces continued and broad-ranging hostile activity from those who seek to compromise our national security and that of our allies. Such behaviour left unchecked can leave Britain vulnerable to disruption, unfair leverage, and espionage. It is crucial that the government has the tools at our disposal to combat these threats coming from ever more determined overseas actors."

The entry of the National Security and Investment Bill into law has coincided with the government's belated intervention in the proposed acquisition by Nvidia of Cambridge-based, SoftBank-owned chip designer Arm over national security grounds.

While the government is correct in wanting to protect our technological crown jewels from unwelcome foreign investment, one can't help but feel that ship has already sailed.

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https://go.theregister.com/feed/www.theregister.com/2021/04/30/national_security_investment_act/

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