UK signals potential curbs on Chinese investment amid ‘derisking’ push – POLITICO

The U.K. faces “a careful balancing act between our freedoms, our prosperity, and our security,” Dowden will say.

But while “we will not decouple from the global economy” the U.K. “must derisk” by tightening export controls and investment flowing overseas that could fund the technology of strategic rivals such as China, he will add.

The U.K. “needs to be mindful” of outbound investments “that are being used to facilitate and support and aid strategic uplift of adversaries,” Dowden told POLITICO ahead of the speech.

But he added that when it comes to outbound investments, “for me, there’s a high bar for the imposition of any form of restrictions.”

While the U.K.’s historic openness has been a strength, “we must be clear-eyed that one of the great strengths of our system … also brings vulnerabilities,” Dowden will say.

Tightening up

Britain’s moves come after Biden signed an executive order last August curbing outbound investment in strategic sectors like semiconductors, AI, and quantum.