National Security and Investment Bill

Alexander Stafford Excerpts

2nd reading & 2nd reading: House of Commons
Tuesday 17th November 2020 Commons Chamber

[Alexander Stafford (Rother Valley) (Con)]

It is a pleasure to follow my hon. Friend the Member for Wantage (David Johnston) and also to recall the axis of evil. He mentions that things have moved on, but I challenge that and say that those countries that were part of that axis of evil are still threats today. Some of us were warning about the likes of China and Russia back in 2000, so I believe that the world is becoming a far more dangerous place. We have an increased number of threats rather than fewer, which is why this Bill is so fundamentally important. We need to have national security as our watchword. I know that this Government understand that perfectly well, so, as well as encouraging new investment into Britain, we need to increase the security and safety of British interests from hostile actors.

The Bill will give the Government new powers to block mergers and acquisitions when they are national security risks. It will also introduce an extension of screening powers to include assets and intellectual property as well as companies.

Why is this Bill so necessary? There is no doubt that foreign direct investment is vital to the UK economy. In the past 10 years, over 600,000 new jobs have been created from more than 16,000 FDI projects and $750 billion have flowed into the UK as a result of FDI. Foreign direct investment is overwhelmingly a good thing. As a Conservative, I am greatly anticipating throwing open our doors to global inward investment as we exit the Brexit transition period. I support unrestricted international trade and, for me, attracting investment into Britain is one of the most exciting things about leaving the European Union. Let me make this clear: leaving the European Union allows us to increase investment in this country, and it will be better economically for all of us.

However, we cannot be naive about the threat that certain regimes pose for the United Kingdom. They exert their influence by taking over companies in strategic areas and increasing our dependency on their products and services, limiting our independence and stifling our dissent in the process. We cannot overthrow the shackles of the European Union only for hostile powers to come over and take over the jewels in the British crown. That is not acceptable.

Members will know well that one of my political interests is the combating of the malign influence of the People’s Republic of China. The Government demonstrated strong leadership earlier this year by banning Huawei from Britain’s 5G infrastructure. I pay tribute to my hon. Friend the Member for Totnes (Anthony Mangnall), who is no longer in his place, who helped the Government to come to the realisation of these malign influences. However, despite Huawei’s weak protestations of independence from the Chinese Communist party, western politicians and companies know the price of conducting business in the PRC. A mainland Chinese telecom company, founded by a former People’s Liberation Army officer, has no chance of avoiding Beijing’s meddling, especially when the company in question is playing a central role in critical western infrastructure.

The same can be said of TikTok, a Chinese-owed app, which has enjoyed explosive growth in the west among teenagers. It is not all fun and games though, with the company being accused of having close links with the Chinese regime and of gathering data on our young people. Indeed, we heard from representatives of TikTok on the Business, Energy and Industrial Strategy Committee a couple of weeks ago, and we heard their protestations saying that they had no connection almost and that they were not passing over data. However, how can that be true when TikTok is owned by China—a state that is naturally hostile to human rights and many other aspects?

There are very real fears that the Chinese state is using its economic influence to weaken our Government, sow discord in our societies and extend its surveillance network in our lives. Let us be honest, it is not just in Britain that we see China act in such a way. We have seen it act across the middle east and into Africa as well. We are not the only country over which China is trying to extend its influence and it is great that this Bill will go some way to stop that influence and protect our national infrastructure. I am pleased that the Bill takes such a strong stance.

Huawei and TikTok should act as a cautionary tale to us for the future. The PRC’s unforgivable actions in Hong Kong, an autonomous territory, against the Uyghurs, a distinct and proud people, and against the Christians in China show us that Beijing cannot play by the rules and we cannot rely on them to look after our best interests.

However, the PRC is not the only regime about which we must worry. I do not need to remind Members of the threat posed by Russia and Iran and other despotic dictatorships. My priority is the protection of the British national interest and the safety of UK citizens. As the UK’s current powers to oversee foreign investment date from legislation in 2002, new primary legislation is needed to bring the UK Government’s powers up to date. As my hon. Friend the Member for Wantage said, much has changed over the past 20 years and therefore these new powers must take into account new threats and technological, economic and geopolitical changes. The Government must have powers to intervene effectively and efficiently to protect the UK. Furthermore, to be an effective and trustworthy ally to our friends and partners around the world, we must bring our powers into line with theirs. Australia, Japan and the United States have already taken action in this area, and we must not be left behind, because if we are, our businesses and our infrastructure will be ripe for the picking for these malign regimes.

This Bill means that we can continue to work on bringing investment to our shores, boosting GDP and creating jobs as we recover from the coronavirus while defending ourselves against those who threaten the safety of the British people and the UK’s sensitive assets. I expect Members in all parts of the House to support this crucial piece of legislation, which will ensure that we are prepared for the challenges and the threats of the future, because the world is not a safe place and there are many countries and regimes that want to do us down. We will always stand with the British people and with British business to protect our interests.