BBC Verify
ReutersThe destiny of Scunthorpe Steel Works has given a new focus on Chinese investment in the United Kingdom economy with critics who ask questions about possible security risks.
The British steel plant had the leg owned by the Jingye steel of China.
But the United Kingdom government now has control of the tasks of the Scunthorpe site, amid statements that the Chinese owners planned to permanently dismantle their two underpants and use their imported Chinese manufacturing metal mills.
BBC Verify analyzes what we know about the scope of Chinese investment in the United Kingdom economy, and how much of a group should go.
How much Chinese investment are in the United Kingdom in total?
National Statistics Office data He suggests that total Chinese investment in the United Kingdom in 2023 amounted to around £ 4.3 billion, a small fraction of the total of £ 2 billion in the abroad in the British economy in that year.
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Independent Estimates of the American Enterprise Institute Expert GroupUsing corporate reports, it suggests that total and private public investment in the United Kingdom between 2005 and 2024 joined up to $ 105 billion, or £ 82 billion.
This would have made Great Britain the third largest national destination of Chinese investment in this period, after only the United States and Australia.
What have Chinese companies invested?
There is a wide range of Chinese investments in the United Kingdom, ranging from the critical infrastructure of energy and transport, to bets in private companies and football clubs.
Significant Chinese investments in the United Kingdom infrastructure include A 10% participation in the London Heathrow Airport By China Investment Corporation, a sovereign wealth fund owned by the Chinese State.
Hong Kong Li Ka-Shing’s Investment Group industrial It has the United Kingdom’s energy networkswhich operates electricity distribution infrastructure in London, the southeast of England and eastern England.
The billionaire group too It has a 76% participation in Northumbrian Water Groupwhich provides water and spirit supply in the northeast of England.
There is also a great Chinese investment in the Hinkley Point C nuclear power plant in Somerset.
China’s general nuclear energy group originally had a 33.5%stake, with the rest owned by the French company EDF.
But EDF reports that the Chinese company has stopped contributing with additional finances to the joint project, which has been working with the budget, and, as a result, Chinese participation at the end of last year had decreased to 27.4%.
The Chinese company itself has an even greater participation, 66.5%, in the nuclear site of Bradwell B in Essex, In accordance with the project website. EDF has the rest.
There is also Chinese investment in other sectors of the United Kingdom economy, such as transport.
The Chinese car with headquarters in Hangzhou, Geely Auto, It has the London EV -headquarters with Coventry headquarters.which manufactures electric black taxis.
Chinese companies also have some investment in consumer brands.
Li Ka-Shing Group It has the Suffolk headquarters Pub chain and the Greene King brewery.
Wolverhampton Wanderers Football Club is Property of the conglomerate based in Shanghai Fosun.
While Jingye Steel had total control of the Scunthorpe steel plant, it is important to keep in mind that Chinese investors do not always have major bets in the United Kingdom companies, which interferes with their ability to determine those companies.
Some of these organizations, such as airports and water services, are also closely regulated, which limits the freedom of maneuver of their Chinese owners in the control of assets.
It is also estimated that Chinese investors have considerable holdings of land and buildings in the United Kingdom.
The Leadenhall building, known as “Cheesegrat”, was in the city of London Acquired by a Chinese real estate investor for £ 1.15 billion in 2017.
How much of a threat could these investments raise?
The potential danger posed by Chinese investment in the United Kingdom infrastructure has been widely discussed in recent years, and a partular inflammation point was the participation of the Chinese technology company based in Shenzhen, Huobei, in the construction of the inflative structure of the United Kingdom.
Huawei was Founded by Ren ZhengfeiA former Chinese army officer, in 1987.
The National Cyber Security Center of the United Kingdom Initially tried in 2019 That any risk raised by Huawei was manageable.
But the United Kingdom, however, required that the Chinese company Start withdrawing from the United Kingdom’s telecommunications infrastructure in 2020After being under the pressure of the United States Government, Donald Trump’s first mandate as president.
Huawei’s participation in the United Kingdom networks was also Oppose a number or parliamentarians.
Getty imagesGrace Theodoulou, a member of the Policy in China in the Geostratey Council, says that there are two main potential threats to consider Chinese investment in the critical infrastructure of the United Kingdom.
“The first is the potential for the example of espionage, which has Chinese manufacturing audiovisual equipment installed in buildings or government devices.
“The second is that the infrastructure can be controlled by the manufacturer and, as such, could be interrupted by geopolitical leverage,” he said.
Some analysts argue that Chinese law – What requires all Chinese companies to align closely with the directives of the Chinese Communist Party already National intelligence efforts – Repeat an inherent security risk in all Chinese investments in western infrastructure.
“A probable scenario in which it could be in China’s interests [to harm UK infrastructure] It would be to prevent Great Britain’s ability to impose sanctions against Beijing in case of a Chinese Invasion of Taiwan.
“If China invaded Taiwan, and if they have control over parts of our critical infrastructure, it would greatly affect the potential to enforce similar sanctions or measures,” said Theodoulou.
However, Other analysts are skeptical About whether it would be of financial interest of Chinese investors to sabotage the infrastructure or the United Kingdom companies, since such shares would collapse the value of their investments and would probably lead to their approval by the United Kingdom government.
“This threat is affirmed and not proven, and the thesis companies are driven by profits, so it is not of interest to sabotage our infrastructure,” said Professor Giles Mohan from the open university.
And they argue that a distinction must be drawn between Chinese investments in vital infrastructure and investments in companies in the United Kingdom, whose brands of owners where public damage potential is praise.
