Sepia

cross-posted from: https://mander.xyz/post/42160115

Archived link

Taiwan's Deputy Foreign Minister Wu Chih-chung called for closer Taiwan-Europe security cooperation at the Berlin Security Conference arguing that peace in Europe is closely linked to stability in the Indo-Pacific.

He noted that Taiwan is a global technological hub, producing about 70% of the world’s semiconductors and more than 95% of its advanced chips. A crisis in the Taiwan Strait, he warned, would cause the most severe disruption to the technological supply chain since World War II.

He said European countries have sent naval vessels through the Taiwan Strait several times since last year. France, the UK, and Italy have deployed carrier strike groups to take part in Indo-Pacific exercises, signaling that Europe is increasingly concerned about Taiwan Strait security.

Wu said Taiwan will increase its defense budget to NT$937.2 billion (US$30 billion) in 2026, with a target of reaching 5% of GDP by 2030, in line with NATO standards.

...

cross-posted from: https://mander.xyz/post/42019141

Archived link

Czech President Petr Pavel used Monday’s Velvet Revolution anniversary to deliver a sharp warning over the unresolved conflict of interest of Prime minister-hopeful Andrej Babiš, winner of who is trying to form a new government.

Pavel signalled he may refuse to appoint the populist ANO party leader, who won October’s Czech parliamentary election, as prime minister unless the matter is resolved.

...

Czech law bars government members from benefiting from state subsidies through companies they control.

Pavel stressed that appointing Babiš while he still owns Agrofert would “create an unlawful situation”.

“I don’t think that’s what the public expects of me, nor does the constitution expect that of me,” he told Czech Radio on Monday. Transparency, he added, is a prerequisite – and if Babiš cannot offer a satisfactory solution, “the winning party should offer another candidate”.

...

Archived link

Czech President Petr Pavel used Monday’s Velvet Revolution anniversary to deliver a sharp warning over the unresolved conflict of interest of Prime minister-hopeful Andrej Babiš, winner of who is trying to form a new government.

Pavel signalled he may refuse to appoint the populist ANO party leader, who won October’s Czech parliamentary election, as prime minister unless the matter is resolved.

...

Czech law bars government members from benefiting from state subsidies through companies they control.

Pavel stressed that appointing Babiš while he still owns Agrofert would “create an unlawful situation”.

“I don’t think that’s what the public expects of me, nor does the constitution expect that of me,” he told Czech Radio on Monday. Transparency, he added, is a prerequisite – and if Babiš cannot offer a satisfactory solution, “the winning party should offer another candidate”.

...

cross-posted from: https://mander.xyz/post/41967876

Archived link

Russia’s largest silicon plant will suspend operations from Jan. 1, 2026, its owner announced Monday.

Metals group Rusal said its decision to shutter the Kremniy plant in the Irkutsk region was prompted by a lack of demand, with imported silicon now significantly cheaper than domestic output and foreign production continuing to rise.

It added that Russian silicon is also struggling to find buyers on global markets.

Rusal said it has notified local authorities of the planned shutdown and expects support in mitigating the “social consequences.”

Its other silicon facility, the Silicon Ural plant, will keep operating at reduced capacity.

Rusal earlier said it would cut its 2025 silicon production to 35,000 tons due to competition from China, down 35% from its 2024 output of 53,400 tons.

...

Archived link

Russia’s largest silicon plant will suspend operations from Jan. 1, 2026, its owner announced Monday.

Metals group Rusal said its decision to shutter the Kremniy plant in the Irkutsk region was prompted by a lack of demand, with imported silicon now significantly cheaper than domestic output and foreign production continuing to rise.

It added that Russian silicon is also struggling to find buyers on global markets.

Rusal said it has notified local authorities of the planned shutdown and expects support in mitigating the “social consequences.”

Its other silicon facility, the Silicon Ural plant, will keep operating at reduced capacity.

Rusal earlier said it would cut its 2025 silicon production to 35,000 tons due to competition from China, down 35% from its 2024 output of 53,400 tons.

...

cross-posted from: https://mander.xyz/post/41965518

...

Dalia Energy recently signed planning, procurement and construction agreements with three Chinese companies, CHEC, HEI and THCC, for the construction of two power plants. The agreements include the construction of the Dalia 2 power plant at the Tzafit site, with a NIS 3.8 billion budget, and the Eshkol Avshel power plant at the Eshkol power plant site, with a NIS 3.3 billion budget.

On government tenders, a process is underway in which investments by Chinese companies are examined by the Foreign Investment Review Committee, which has blocked several investments by Chinese companies in Israel in recent years. However, they have found a back door to enter investments in critical facilities by signing agreements with private companies, such as Dalia.

China Harbor, part of the consortium that won the construction of the two Dalia power plants was previously disqualified from the tender to build a refinery port in Haifa. After Israel Ports Co. took this step "for national security reasons," the Chinese appealed to the courts. Last year, a judge in the Tel Aviv District Court explained that he intended to rule against China Harbor and dismiss the petition that was presented to him. The Chinese company subsequently withdrew the petition to avoid a ruling.

Dalia's ventures are not the first for China Harbor in the energy sector. Complaints were also raised about the company's involvement in the construction work of the Kesem power plant, but at that time the National Security Council found no problems with the project. "The foreign company is not establishing or operating the plant but rather performing contract work for the builder (work estimated to be very small in scope compared with the project)," the National Public Works Department wrote in response to a request from the Rosh Ha’Ayin Municipality.

...

There are also strategic infrastructures that have already been built with Chinese assistance. For example, in February 2025, the Kochav Hayarden pumped storage power plant, which was built with an investment of NIS 2 billion, began operations. PowerChina was the contractor and builder of the project. At the same time, there are Chinese companies that hold ownership: PMEC holds 33.3% of the Alon Tavor power plant, alongside Israeli partners Mivtach Shamir and Rapac.

...

Not a single word about China

Last week Minister of Energy and Infrastructure Eli Cohen responded to a question submitted by MK Moshe Tur-Paz (Yesh Atid) on China. "The State of Israel is a free market economy that wants there to be competition in all construction of infrastructure facilities. We are of course working with everyone," Cohen said, without the word "China" appearing in his answer.

"Despite this, and I am not referring to any specific country, there is a body in the National Security Council that is responsible for examining foreign investments, and in any instance where there is concern that that entity has interests that could harm the national security of the State of Israel, then we forward the request, and any request for the construction of a power plant, which is an essential, strategic facility, reaches the National Security Council, is examined there, and without specifying cases of companies or projects or countries, there have been cases where projects have been stopped in the past."

...

...

Dalia Energy recently signed planning, procurement and construction agreements with three Chinese companies, CHEC, HEI and THCC, for the construction of two power plants. The agreements include the construction of the Dalia 2 power plant at the Tzafit site, with a NIS 3.8 billion budget, and the Eshkol Avshel power plant at the Eshkol power plant site, with a NIS 3.3 billion budget.

On government tenders, a process is underway in which investments by Chinese companies are examined by the Foreign Investment Review Committee, which has blocked several investments by Chinese companies in Israel in recent years. However, they have found a back door to enter investments in critical facilities by signing agreements with private companies, such as Dalia.

China Harbor, part of the consortium that won the construction of the two Dalia power plants was previously disqualified from the tender to build a refinery port in Haifa. After Israel Ports Co. took this step "for national security reasons," the Chinese appealed to the courts. Last year, a judge in the Tel Aviv District Court explained that he intended to rule against China Harbor and dismiss the petition that was presented to him. The Chinese company subsequently withdrew the petition to avoid a ruling.

Dalia's ventures are not the first for China Harbor in the energy sector. Complaints were also raised about the company's involvement in the construction work of the Kesem power plant, but at that time the National Security Council found no problems with the project. "The foreign company is not establishing or operating the plant but rather performing contract work for the builder (work estimated to be very small in scope compared with the project)," the National Public Works Department wrote in response to a request from the Rosh Ha’Ayin Municipality.

...

There are also strategic infrastructures that have already been built with Chinese assistance. For example, in February 2025, the Kochav Hayarden pumped storage power plant, which was built with an investment of NIS 2 billion, began operations. PowerChina was the contractor and builder of the project. At the same time, there are Chinese companies that hold ownership: PMEC holds 33.3% of the Alon Tavor power plant, alongside Israeli partners Mivtach Shamir and Rapac.

...

Not a single word about China

Last week Minister of Energy and Infrastructure Eli Cohen responded to a question submitted by MK Moshe Tur-Paz (Yesh Atid) on China. "The State of Israel is a free market economy that wants there to be competition in all construction of infrastructure facilities. We are of course working with everyone," Cohen said, without the word "China" appearing in his answer.

"Despite this, and I am not referring to any specific country, there is a body in the National Security Council that is responsible for examining foreign investments, and in any instance where there is concern that that entity has interests that could harm the national security of the State of Israel, then we forward the request, and any request for the construction of a power plant, which is an essential, strategic facility, reaches the National Security Council, is examined there, and without specifying cases of companies or projects or countries, there have been cases where projects have been stopped in the past."

...

cross-posted from: https://mander.xyz/post/41958131

China has financed tens of billions of pounds' worth of investment in UK businesses and projects this century, some of which gave it access to military-grade technology, BBC Panorama has learned.

The spending spree - worth £45bn ($59bn) at 2023 prices - was at its height following a 2015 Chinese state directive, aimed at making the country a global leader in high-tech industries.

The UK has been the top destination among G7 nations for these investments, relative to the size of its population and economy, according to US-based research group AidData.

Panorama has investigated how this led to cutting-edge technology and skills being transferred to China. The UK was "far too free in allowing access to strategically important industries", according to a former head of GCHQ.

...

These objectives were laid out by China's communist leaders in a strategic plan 10 years ago, called "Made In China 2025". It set ambitious targets for the country to become the industry leader in 10 high-tech sectors, including aerospace, electric vehicles and robotics.

This was a far-sighted strategy, according to Prof Keyu Jin of Hong Kong University of Science and Technology: "It's the longer-term strategic thinking that China has always had, and I'd argue that many other countries also should have."

...

Imagination Technologies, a Hertfordshire-based firm, was one of the companies Panorama looked at.

It specialises in semiconductor design - in other words, designing the tiny electronic circuits inside chips that power devices such as computers and smartphones.

Exterior view of a modern white building with the Imagination Technologies logo on the wall, featuring a stylized circular and square design above the word ‘Imagination.’ Several bollards line the foreground, and parked cars are visible near the entrance.

...

In 2017, Imagination had recently lost its most important client, Apple, and had seen its share price fall dramatically. It was snapped up for £550m by a private equity firm, Canyon Bridge, based at that time in the US state of California.

The Canyon Bridge fund that bought Imagination had one investor - Yitai Capital, whose largest stakeholder is China Reform. This organisation reports to the State Council, the body responsible for carrying out party policies and laws.

...

In his first interview since leaving Imagination, the company's former CEO, Ron Black, says the UK government vetted the deal, and he was told "unequivocally" by Canyon Bridge that China Reform would be a passive investor, only interested in making money.

However, in 2019, Mr Black says he was summoned to a meeting in Beijing, where he was asked to work directly for China Reform, and oversee the wholesale transfer of Imagination's technology and expertise to China.

"I think [the China Reform representative] said specifically 'from the heads of the British engineers to the Chinese engineers, then lay off the British engineers and you'll make a lot of money'," says Mr Black.

He refused, but he says that several months later, China Reform tried to install four new directors "with no understanding of semiconductors" directly onto the board of Imagination Technologies.

...

Fearful about the possible transfer of military-grade technology, Mr Black resigned. At that point, he says, the UK government started to take an interest, and China Reform halted its attempt to install new directors.

...

In 2017, the UK had fewer powers to stop the sale of a company such as Imagination to Chinese owners. Two years earlier, China's leader, Xi Jinping, had been welcomed on a state visit, with David Cameron's Conservative government hailing the start of a "golden era" in China-UK relations.

"We thought China was basically a very friendly power and there was lots of money to be made," says Sir Jeremy Hunt. In 2015 he was health secretary, and later held other government posts, including chancellor of the exchequer and foreign secretary. "But under the surface, we were beginning to sense a much more assertive China."

...

Europe as a whole and some US businesses were naive about China in 2017-18, according to John Bolton, former US national security advisor during the first Trump administration.

"There was a reluctance to think we were slipping back into some kind of Cold War," he says.

...

The high point for Chinese overseas investment was during 2016 and 2017, according to Dr Parks. After this point, he says, many countries started strengthening screening mechanisms on national security grounds.

The US, Germany and Italy tightened vetting on foreign investment by 2018. The UK followed suit in 2022.

Sir Jeremy Fleming is cautiously optimistic that lessons have been learned.

"We have a much stronger regime in place," he says. "But would I say the process is watertight? Absolutely not."

In 2024, a Labour government was elected, but it faced the same issue as its Conservative predecessor - namely, that the UK needed economic growth and China could help.

"One big problem in Europe, including the UK, is that there's not enough investment and funding," says Prof Keyu Jin. "China is very happy to finance some of these projects. And there are lots of areas where there's no real threat of national security."

...

But some Labour MPs are concerned the government has not published its China audit, which it carried out as part of an election manifesto commitment.

"I was promised by the foreign secretary that it would be published," says Dame Emily Thornberry MP, the chair of the House of Commons Foreign Affairs Committee. "Then we hear that the China audit has happened but we're not going to be told about it, we're only going to get a few lines."

The Foreign Office has told Panorama it did not publish its full audit because of its security classification.

...

cross-posted from: https://mander.xyz/post/41958131

China has financed tens of billions of pounds' worth of investment in UK businesses and projects this century, some of which gave it access to military-grade technology, BBC Panorama has learned.

The spending spree - worth £45bn ($59bn) at 2023 prices - was at its height following a 2015 Chinese state directive, aimed at making the country a global leader in high-tech industries.

The UK has been the top destination among G7 nations for these investments, relative to the size of its population and economy, according to US-based research group AidData.

Panorama has investigated how this led to cutting-edge technology and skills being transferred to China. The UK was "far too free in allowing access to strategically important industries", according to a former head of GCHQ.

...

These objectives were laid out by China's communist leaders in a strategic plan 10 years ago, called "Made In China 2025". It set ambitious targets for the country to become the industry leader in 10 high-tech sectors, including aerospace, electric vehicles and robotics.

This was a far-sighted strategy, according to Prof Keyu Jin of Hong Kong University of Science and Technology: "It's the longer-term strategic thinking that China has always had, and I'd argue that many other countries also should have."

...

Imagination Technologies, a Hertfordshire-based firm, was one of the companies Panorama looked at.

It specialises in semiconductor design - in other words, designing the tiny electronic circuits inside chips that power devices such as computers and smartphones.

Exterior view of a modern white building with the Imagination Technologies logo on the wall, featuring a stylized circular and square design above the word ‘Imagination.’ Several bollards line the foreground, and parked cars are visible near the entrance.

...

In 2017, Imagination had recently lost its most important client, Apple, and had seen its share price fall dramatically. It was snapped up for £550m by a private equity firm, Canyon Bridge, based at that time in the US state of California.

The Canyon Bridge fund that bought Imagination had one investor - Yitai Capital, whose largest stakeholder is China Reform. This organisation reports to the State Council, the body responsible for carrying out party policies and laws.

...

In his first interview since leaving Imagination, the company's former CEO, Ron Black, says the UK government vetted the deal, and he was told "unequivocally" by Canyon Bridge that China Reform would be a passive investor, only interested in making money.

However, in 2019, Mr Black says he was summoned to a meeting in Beijing, where he was asked to work directly for China Reform, and oversee the wholesale transfer of Imagination's technology and expertise to China.

"I think [the China Reform representative] said specifically 'from the heads of the British engineers to the Chinese engineers, then lay off the British engineers and you'll make a lot of money'," says Mr Black.

He refused, but he says that several months later, China Reform tried to install four new directors "with no understanding of semiconductors" directly onto the board of Imagination Technologies.

...

Fearful about the possible transfer of military-grade technology, Mr Black resigned. At that point, he says, the UK government started to take an interest, and China Reform halted its attempt to install new directors.

...

In 2017, the UK had fewer powers to stop the sale of a company such as Imagination to Chinese owners. Two years earlier, China's leader, Xi Jinping, had been welcomed on a state visit, with David Cameron's Conservative government hailing the start of a "golden era" in China-UK relations.

"We thought China was basically a very friendly power and there was lots of money to be made," says Sir Jeremy Hunt. In 2015 he was health secretary, and later held other government posts, including chancellor of the exchequer and foreign secretary. "But under the surface, we were beginning to sense a much more assertive China."

...

Europe as a whole and some US businesses were naive about China in 2017-18, according to John Bolton, former US national security advisor during the first Trump administration.

"There was a reluctance to think we were slipping back into some kind of Cold War," he says.

...

The high point for Chinese overseas investment was during 2016 and 2017, according to Dr Parks. After this point, he says, many countries started strengthening screening mechanisms on national security grounds.

The US, Germany and Italy tightened vetting on foreign investment by 2018. The UK followed suit in 2022.

Sir Jeremy Fleming is cautiously optimistic that lessons have been learned.

"We have a much stronger regime in place," he says. "But would I say the process is watertight? Absolutely not."

In 2024, a Labour government was elected, but it faced the same issue as its Conservative predecessor - namely, that the UK needed economic growth and China could help.

"One big problem in Europe, including the UK, is that there's not enough investment and funding," says Prof Keyu Jin. "China is very happy to finance some of these projects. And there are lots of areas where there's no real threat of national security."

...

But some Labour MPs are concerned the government has not published its China audit, which it carried out as part of an election manifesto commitment.

"I was promised by the foreign secretary that it would be published," says Dame Emily Thornberry MP, the chair of the House of Commons Foreign Affairs Committee. "Then we hear that the China audit has happened but we're not going to be told about it, we're only going to get a few lines."

The Foreign Office has told Panorama it did not publish its full audit because of its security classification.

...

cross-posted from: https://mander.xyz/post/41958131

China has financed tens of billions of pounds' worth of investment in UK businesses and projects this century, some of which gave it access to military-grade technology, BBC Panorama has learned.

The spending spree - worth £45bn ($59bn) at 2023 prices - was at its height following a 2015 Chinese state directive, aimed at making the country a global leader in high-tech industries.

The UK has been the top destination among G7 nations for these investments, relative to the size of its population and economy, according to US-based research group AidData.

Panorama has investigated how this led to cutting-edge technology and skills being transferred to China. The UK was "far too free in allowing access to strategically important industries", according to a former head of GCHQ.

...

These objectives were laid out by China's communist leaders in a strategic plan 10 years ago, called "Made In China 2025". It set ambitious targets for the country to become the industry leader in 10 high-tech sectors, including aerospace, electric vehicles and robotics.

This was a far-sighted strategy, according to Prof Keyu Jin of Hong Kong University of Science and Technology: "It's the longer-term strategic thinking that China has always had, and I'd argue that many other countries also should have."

...

Imagination Technologies, a Hertfordshire-based firm, was one of the companies Panorama looked at.

It specialises in semiconductor design - in other words, designing the tiny electronic circuits inside chips that power devices such as computers and smartphones.

Exterior view of a modern white building with the Imagination Technologies logo on the wall, featuring a stylized circular and square design above the word ‘Imagination.’ Several bollards line the foreground, and parked cars are visible near the entrance.

...

In 2017, Imagination had recently lost its most important client, Apple, and had seen its share price fall dramatically. It was snapped up for £550m by a private equity firm, Canyon Bridge, based at that time in the US state of California.

The Canyon Bridge fund that bought Imagination had one investor - Yitai Capital, whose largest stakeholder is China Reform. This organisation reports to the State Council, the body responsible for carrying out party policies and laws.

...

In his first interview since leaving Imagination, the company's former CEO, Ron Black, says the UK government vetted the deal, and he was told "unequivocally" by Canyon Bridge that China Reform would be a passive investor, only interested in making money.

However, in 2019, Mr Black says he was summoned to a meeting in Beijing, where he was asked to work directly for China Reform, and oversee the wholesale transfer of Imagination's technology and expertise to China.

"I think [the China Reform representative] said specifically 'from the heads of the British engineers to the Chinese engineers, then lay off the British engineers and you'll make a lot of money'," says Mr Black.

He refused, but he says that several months later, China Reform tried to install four new directors "with no understanding of semiconductors" directly onto the board of Imagination Technologies.

...

Fearful about the possible transfer of military-grade technology, Mr Black resigned. At that point, he says, the UK government started to take an interest, and China Reform halted its attempt to install new directors.

...

In 2017, the UK had fewer powers to stop the sale of a company such as Imagination to Chinese owners. Two years earlier, China's leader, Xi Jinping, had been welcomed on a state visit, with David Cameron's Conservative government hailing the start of a "golden era" in China-UK relations.

"We thought China was basically a very friendly power and there was lots of money to be made," says Sir Jeremy Hunt. In 2015 he was health secretary, and later held other government posts, including chancellor of the exchequer and foreign secretary. "But under the surface, we were beginning to sense a much more assertive China."

...

Europe as a whole and some US businesses were naive about China in 2017-18, according to John Bolton, former US national security advisor during the first Trump administration.

"There was a reluctance to think we were slipping back into some kind of Cold War," he says.

...

The high point for Chinese overseas investment was during 2016 and 2017, according to Dr Parks. After this point, he says, many countries started strengthening screening mechanisms on national security grounds.

The US, Germany and Italy tightened vetting on foreign investment by 2018. The UK followed suit in 2022.

Sir Jeremy Fleming is cautiously optimistic that lessons have been learned.

"We have a much stronger regime in place," he says. "But would I say the process is watertight? Absolutely not."

In 2024, a Labour government was elected, but it faced the same issue as its Conservative predecessor - namely, that the UK needed economic growth and China could help.

"One big problem in Europe, including the UK, is that there's not enough investment and funding," says Prof Keyu Jin. "China is very happy to finance some of these projects. And there are lots of areas where there's no real threat of national security."

...

But some Labour MPs are concerned the government has not published its China audit, which it carried out as part of an election manifesto commitment.

"I was promised by the foreign secretary that it would be published," says Dame Emily Thornberry MP, the chair of the House of Commons Foreign Affairs Committee. "Then we hear that the China audit has happened but we're not going to be told about it, we're only going to get a few lines."

The Foreign Office has told Panorama it did not publish its full audit because of its security classification.

...

China has financed tens of billions of pounds' worth of investment in UK businesses and projects this century, some of which gave it access to military-grade technology, BBC Panorama has learned.

The spending spree - worth £45bn ($59bn) at 2023 prices - was at its height following a 2015 Chinese state directive, aimed at making the country a global leader in high-tech industries.

The UK has been the top destination among G7 nations for these investments, relative to the size of its population and economy, according to US-based research group AidData.

Panorama has investigated how this led to cutting-edge technology and skills being transferred to China. The UK was "far too free in allowing access to strategically important industries", according to a former head of GCHQ.

...

These objectives were laid out by China's communist leaders in a strategic plan 10 years ago, called "Made In China 2025". It set ambitious targets for the country to become the industry leader in 10 high-tech sectors, including aerospace, electric vehicles and robotics.

This was a far-sighted strategy, according to Prof Keyu Jin of Hong Kong University of Science and Technology: "It's the longer-term strategic thinking that China has always had, and I'd argue that many other countries also should have."

...

Imagination Technologies, a Hertfordshire-based firm, was one of the companies Panorama looked at.

It specialises in semiconductor design - in other words, designing the tiny electronic circuits inside chips that power devices such as computers and smartphones.

Exterior view of a modern white building with the Imagination Technologies logo on the wall, featuring a stylized circular and square design above the word ‘Imagination.’ Several bollards line the foreground, and parked cars are visible near the entrance.

...

In 2017, Imagination had recently lost its most important client, Apple, and had seen its share price fall dramatically. It was snapped up for £550m by a private equity firm, Canyon Bridge, based at that time in the US state of California.

The Canyon Bridge fund that bought Imagination had one investor - Yitai Capital, whose largest stakeholder is China Reform. This organisation reports to the State Council, the body responsible for carrying out party policies and laws.

...

In his first interview since leaving Imagination, the company's former CEO, Ron Black, says the UK government vetted the deal, and he was told "unequivocally" by Canyon Bridge that China Reform would be a passive investor, only interested in making money.

However, in 2019, Mr Black says he was summoned to a meeting in Beijing, where he was asked to work directly for China Reform, and oversee the wholesale transfer of Imagination's technology and expertise to China.

"I think [the China Reform representative] said specifically 'from the heads of the British engineers to the Chinese engineers, then lay off the British engineers and you'll make a lot of money'," says Mr Black.

He refused, but he says that several months later, China Reform tried to install four new directors "with no understanding of semiconductors" directly onto the board of Imagination Technologies.

...

Fearful about the possible transfer of military-grade technology, Mr Black resigned. At that point, he says, the UK government started to take an interest, and China Reform halted its attempt to install new directors.

...

In 2017, the UK had fewer powers to stop the sale of a company such as Imagination to Chinese owners. Two years earlier, China's leader, Xi Jinping, had been welcomed on a state visit, with David Cameron's Conservative government hailing the start of a "golden era" in China-UK relations.

"We thought China was basically a very friendly power and there was lots of money to be made," says Sir Jeremy Hunt. In 2015 he was health secretary, and later held other government posts, including chancellor of the exchequer and foreign secretary. "But under the surface, we were beginning to sense a much more assertive China."

...

Europe as a whole and some US businesses were naive about China in 2017-18, according to John Bolton, former US national security advisor during the first Trump administration.

"There was a reluctance to think we were slipping back into some kind of Cold War," he says.

...

The high point for Chinese overseas investment was during 2016 and 2017, according to Dr Parks. After this point, he says, many countries started strengthening screening mechanisms on national security grounds.

The US, Germany and Italy tightened vetting on foreign investment by 2018. The UK followed suit in 2022.

Sir Jeremy Fleming is cautiously optimistic that lessons have been learned.

"We have a much stronger regime in place," he says. "But would I say the process is watertight? Absolutely not."

In 2024, a Labour government was elected, but it faced the same issue as its Conservative predecessor - namely, that the UK needed economic growth and China could help.

"One big problem in Europe, including the UK, is that there's not enough investment and funding," says Prof Keyu Jin. "China is very happy to finance some of these projects. And there are lots of areas where there's no real threat of national security."

...

But some Labour MPs are concerned the government has not published its China audit, which it carried out as part of an election manifesto commitment.

"I was promised by the foreign secretary that it would be published," says Dame Emily Thornberry MP, the chair of the House of Commons Foreign Affairs Committee. "Then we hear that the China audit has happened but we're not going to be told about it, we're only going to get a few lines."

The Foreign Office has told Panorama it did not publish its full audit because of its security classification.

...

cross-posted from: https://mander.xyz/post/41908954

Archived

...

The [European] Commission "strongly urges" member states to comply with its recommendations and adopt "appropriate measures" to "restrict or exclude Huawei from their 5G networks," a spokesperson said, emphasizing that Brussels considers the Chinese company to pose "significantly higher risks than other suppliers." "A lack of swift action exposes the entire EU to a clear risk," the spokesperson insisted.

To date, only 13 member states have taken steps to restrict Huawei's access to their networks. France was among the first, passing a law in August 2019 to reduce Huawei's footprint in the country: SFR and Bouygues Telecom, the two operators using its services, had to dismantle thousands of Chinese antennas, especially those located near sites deemed strategic, whether factories, military bases or government facilities.

...

Long more welcoming to Huawei, Germany – the company's largest market in Europe – is now taking a tougher stance. In Berlin on Thursday, conservative Chancellor Friedrich Merz declared his determination to replace certain 5G network components with parts that Germany produces itself, Bloomberg reported. "And we won't allow any components from China in the 6G network," he added.

Berlin already took steps in summer 2024 to exclude Huawei from sensitive 5G Core Network infrastructure, where all communications transit by the end of 2026. The aim was to protect "the central nervous systems of Germany as a business location – and we are protecting the communication of citizens, companies and the state," said Nancy Faeser, then Germany's interior minister, on July 11, 2024.

But for Brussels, "this is not enough." Some countries, such as Spain, have opened their doors wide to Chinese investment. And the Commission viewed Madrid's July decision to entrust Huawei with management of court-ordered phone surveillance data storage as alarming.

...