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Select Committee · Foreign Affairs Committee

The FCDO’s role in blocking foreign asset stripping in the UK

Status: Closed Opened: 7 Apr 2020 Closed: 28 Apr 2022 14 recommendations 4 conclusions 3 reports

This inquiry will examine how the FCDO assesses whether a potentially hostile party is seeking to secure significant influence or control over a UK company and in what circumstances the FCDO should intervene. The Committee will also focus on what safeguards are required in the forthcoming National Security and Investment Bill to ensure that the … Show more

Clear

Reports

3 reports
Title HC No. Published Items Response
Sixth report - Sovereignty for sale: follow-up to the acqui… HC 1245 5 Apr 2022 2 Responded
Third Report - Sovereignty for sale: the FCDO’s role in pro… HC 197 14 Jul 2021 12 Responded
Sixth Report: Striking the balance: Protecting national sec… HC 296 19 Jan 2021 4 Responded

Recommendations & Conclusions

5 items
1 Recommendation Third Report - Sovereignty for sale: th… Accepted

The takeover of Newport Wafer Fab by Nexperia represents the sale of one of the...

The takeover of Newport Wafer Fab by Nexperia represents the sale of one of the UK’s prized assets to a strategic competitor, at a time when global chip shortages means that the products manufactured by NWF are of vital national importance. Failure to conduct a detailed assessment of this transaction … Read more

Government response AI summary
The government notes the recommendation, states it prioritises national security, and confirms the National Security Adviser is currently conducting a review into the acquisition of Newport Wafer Fab by Nexperia. Further comment is deferred until the review concludes.
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Foreign, Commonwealth & Development Office
5 Recommendation Third Report - Sovereignty for sale: th… Accepted

For the FCDO to add value to the NSI regime, it will be important that...

For the FCDO to add value to the NSI regime, it will be important that the Department has the necessary skills, expertise and structures to effectively support the ISU. If the Government continues to behave in the same ways and rely on the same skills base as it has previously, … Read more

Government response AI summary
The government agrees that the FCDO has a key role and states a dedicated FCDO team has been established to support the ISU, raise awareness, and build capability. They are actively identifying and securing necessary short and long-term capabilities.
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Foreign, Commonwealth & Development Office
6 Recommendation Third Report - Sovereignty for sale: th… Accepted

The FCDO should demonstrate leadership on the foreign relations aspects of foreign investment decisions.

The FCDO should demonstrate leadership on the foreign relations aspects of foreign investment decisions. Supporting the ISU’s work in this area is a key responsibility of the FCDO. It will be vital that the Department has the right expertise both at overseas Posts and in London to fulfil this responsibility, … Read more

Government response AI summary
The government agrees with the FCDO's leadership role in foreign investment decisions and has established a dedicated FCDO team to support the ISU, raise awareness, and build FCDO capability in this area, both in the UK and overseas.
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Foreign, Commonwealth & Development Office
7 Recommendation Third Report - Sovereignty for sale: th… Accepted

We support the Government’s decision to keep the NSI Act agnostic of geography or type...

We support the Government’s decision to keep the NSI Act agnostic of geography or type of actor, so that investments are judged on a case-by case rather than country- 30 Sovereignty for sale: the FCDO’s role in protecting strategic British assets specific basis. The FCDO has a vital role to … Read more

Government response AI summary
The government accepted the recommendation, stating that FCDO will contribute its expertise and assessment of foreign governments' strategic intent to inform NSI screening and assessment processes.
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Foreign, Commonwealth & Development Office
9 Recommendation Third Report - Sovereignty for sale: th… Accepted

Given the complex and transnational nature of the global investment landscape, the UK cannot operate...

Given the complex and transnational nature of the global investment landscape, the UK cannot operate alone on this matter. The Government should cooperate on FDI screening with other countries with whom we share values and strategic objectives. We recommend that the FCDO seeks to play a leading role in bringing … Read more

Government response AI summary
The government states that the FCDO already works closely with several like-minded countries, promotes its work internationally, and cooperates with Five Eyes and G7 partners on investment security.
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Foreign, Commonwealth & Development Office

Oral evidence sessions

8 sessions
Date Witnesses
23 Mar 2021 Chris Rampling · Foreign, Commonwealth and Development Office, Jacqui Ward · Department for Business, Energy and Industrial Strategy, Paul Scully, Rt Hon James Cleverly, Sarah Mackintosh · Department of Business, Energy and Industrial Strategy View ↗
23 Feb 2021 Dr Ashley Lenihan · Georgetown University, Michael Formosa · Renaissance Strategic Advisors, Paddy McGuinness · Brunswick View ↗
1 Dec 2020 Christopher Mackmurdo · Legatus, Hazel Moore · FirstCapital, Russ Shaw · Global Tech Advocates & Tech London Advocates, Sophia Gaston · British Foreign Policy Group View ↗
24 Nov 2020 Andy Sellars · Compound Semiconductor Catapult, Roger Barker · Institute of Directors, Roger Barron · Paul Hastings, Veronica Roberts · Herbert Smith Freehills View ↗
3 Nov 2020 Azeem Azhar, Grace Cassy · CyLon Ventures, Professor Nick Jennings, Professor Shaowei He View ↗
13 Oct 2020 Matthew Rous · China-Britain Business Council, Professor Ciaran Martin · Blavatnik School of Government, University of Oxford, Professor Deeph Chana · Institute for Security Science and Technology, Imperial College London, Ting Zhang · Crayfish.io View ↗
8 Sep 2020 Chris Cummings · The Investment Association, Elisabeth Braw · Atlantic Council, John Fingleton · Fingleton, Professor Jeffrey Henderson · University of Bristol View ↗
5 May 2020 Dr Ron Black · Imagination Technologies, John Rayfield · Imagination Technologies, Ray Bingham · Imagination Technologies, Sir Hossein Yassaie · Imagination Technologies View ↗

Who gave evidence

32 witnesses
WitnessOrganisationSessions
Andy Sellars · Strategic Development Director Compound Semiconductor Catapult 1
Azeem Azhar — 1
Chris Cummings · Chief Executive Officer The Investment Association 1
Chris Rampling · Director of National Security Foreign, Commonwealth and Development Office 1
Christopher Mackmurdo · Founder Legatus 1
Dr Ashley Lenihan · Professor in the Practice of International Affairs Georgetown University 1
Dr Ron Black · Former CEO Imagination Technologies 1
Elisabeth Braw · Senior Fellow at the Scowcroft Center Atlantic Council 1
Grace Cassy CyLon Ventures 1
Hazel Moore · Chair and Co-Founder FirstCapital 1
Jacqui Ward · Director for National Security and International Department for Business, Energy and Industrial Strategy 1
John Fingleton · Founder & Chief Executive Fingleton 1
John Rayfield · Chief Technical Officer Imagination Technologies 1
Matthew Rous · Chief Executive China-Britain Business Council 1
Michael Formosa · Managing Partner Renaissance Strategic Advisors 1
Paddy McGuinness · Senior Advisor Brunswick 1
Paul Scully — 1
Professor Ciaran Martin · Professor of Practice in the Management of Public… Blavatnik School of Government, University of Oxford 1
Professor Deeph Chana · Co-Director Institute for Security Science and Technology, Imperial College London 1
Professor Jeffrey Henderson · Professor Emeritus of International Development University of Bristol 1
Professor Nick Jennings — 1
Professor Shaowei He — 1
Ray Bingham · Acting CEO, Co-Founder and Partner, Canyon Bridge Imagination Technologies 1
Roger Barker · Director of Policy and Corporate Governance Institute of Directors 1
Roger Barron · Partner Paul Hastings 1
Rt Hon James Cleverly — 1
Russ Shaw · Founder Global Tech Advocates & Tech London Advocates 1
Sarah Mackintosh · Deputy Director for National Security and Investm… Department of Business, Energy and Industrial Strategy 1
Sir Hossein Yassaie · Former CEO Imagination Technologies 1
Sophia Gaston · Director British Foreign Policy Group 1
Ting Zhang · Founder and Chief Executive Officer Crayfish.io 1
Veronica Roberts · Partner Herbert Smith Freehills 1

Correspondence

17 letters
DateDirectionTitle
12 Jan 2022 — Correspondence with the National Security Adviser relating to the acquisition o…
28 Jul 2021 — Correspondence with the Secretary of State for Business, Energy and Industrial …
15 Jul 2021 From cttee Letter to the Prime Minister relating to the takeover of Newport Wafer Fab, dat…
7 Jul 2021 — Correspondence with the Secretary of State for Business, Energy and Industrial …
9 Jun 2021 — Correspondence with the Secretary of State for BEIS on Newport Wafer Fab and th…
27 Jan 2021 — Correspondence with the Danish Ministry of Foreign Affairs regarding national s…
18 Nov 2020 — Correspondence with the Foreign Secretary and the Secretary of State for Busine…
18 Nov 2020 To cttee Letter from the Secretary of State for Business, Energy and Industrial Strategy…
18 Nov 2020 To cttee Letter from the Economic Secretary to the Treasury relating to Action 19 of the…
1 May 2020 — Correspondence from Imagination Technologies evidence to inquiry on asset strip…
1 May 2020 — Correspondence from Foreign Secretary regarding Imagination Technologies Group,…
14 Apr 2020 — Correspondence from Canyon Bridge on Imagination Technologies, dated 13/04/2020
11 Apr 2020 — Correspondence to the CEO of Imagination Technologies, dated 8/4/2020
11 Apr 2020 — Correspondence to Canyon Bridge on Imagination Technologies, dated 8/04/2020
11 Apr 2020 — Correspondence to the Secretary of State DCMS on Imagination Technologies, date…
11 Apr 2020 — Correspondence to the Prime Minister on Imagination Technologies, dated 3/04/20…
7 Apr 2020 — Correspondence to Imagination Technologies on board membership, dated 7/04/2020