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UK ordered Chinese company to sell shares in local firm for national security

UK ordered Chinese company to sell shares in local firm for national security

“Following a detailed assessment of national security, the Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps) decided to issue a final ordinance mandating Nexperia to sell at least 86% of Newport Wafer Fab“, the executive spokesman said in a statement.

This decision was made “to protect against potential dangers to national security”the statement added.

In his official directive, Shapps indicated that there was a risk related to “technology and knowledge (…) that could jeopardize the capabilities of the United Kingdom.”

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The Dutch company Nexperia, which belongs to the Chinese mobile technology giant wingtech, completed the acquisition of Newport Wafer Fab in July 2021, after paying an undisclosed amount.

The announcement that London requires the Chinese company to sell its shares comes at a time of growing tensions between the United Kingdom and China, accentuated after the arrival of the new British prime minister, Rishi Sunak.

The British authorities had already banned the Chinese giant Huawei in 2020 from deploying 5G networks on British territory.

Source: Ambito

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