Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, whether there are Government restrictions or constraints on the UK business activities of (a) Huawei, (b) ZTE, (c) Hikvision, (d) Hytera, (e) Alibaba, (f) Tencent, (g) Dahua, (h) China Telecom, (i) China Mobile, (j) DJI, (k) Byte Dance, (l) Kingsoft, (m) SenseTime, (n) Megvii, (o) SMIC, (p) China Unicom and (q) Fujian Jinhua.

As set out in the Integrated Review, we will continue to pursue a positive trade and investment relationship with China, whilst ensuring our national security and values are protected. We have published guidance which provides UK firms with clear, up-to-date information and specialist support to help negotiate the ethical, legal and commercial questions they may encounter in China or when working with Chinese businesses.

As an open economy, we welcome foreign trade and investment, including from China, where it supports UK growth and jobs. However, the government will not accept investments that compromise our national security, and all investment must meet stringent legal and regulatory requirements to protect the UK’s national interest. Where we identify concerns, the government will not hesitate to use its powers to protect national security on a case-by-case basis. The National Security and Investment (NSI) Act, which fully commenced on 4 January 2022, gives the government powers to scrutinise and potentially intervene in acquisitions of control over entities and assets in or linked to the UK that may pose national security risks.

In addition, on 19 May, legislation came into force extending the scope of export control powers as they apply to exports of otherwise non-controlled goods and technology intended for a “military end-use” in a destination subject to arms embargo. This fulfilled the commitment made by the International Trade Secretary in her Written Ministerial Statement of 8 December 2021. These changes allow us to better address threats to national security, international peace and security, and human rights arising from the use of non-listed items by the military, police or security forces, or entities acting on their behalf, in an embargoed destination. We also added China to the list of “embargoed destinations” to which military end-use controls can be applied.

Last year we introduced the Telecommunications (Security) Act 2021, which gives new national security powers for the government to impose controls on public communications providers' use of designated vendors' goods, services and facilities in UK public telecoms networks. The Government has held a consultation on proposals to use the new national security powers in the case of Huawei.