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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
2 Conclusion Sixth Report: Striking the balance: Pro… Acknowledged

The Bill in its current form does not provide sufficiently clear guidance on how national...

The Bill in its current form does not provide sufficiently clear guidance on how national security should be understood. This is likely to hinder targeted application of the new law, with adverse repercussions for the UK’s national security and economy. Read more

Government response AI summary
The government acknowledges the committee's observation by reiterating its deliberate decision not to define ‘national security’ in the Bill, citing the need for flexibility to respond to evolving risks.
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Foreign, Commonwealth & Development Office
3 Recommendation Third Report - Sovereignty for sale: th… Acknowledged

It is vital that there is continuous monitoring of the investment and technology landscapes to...

It is vital that there is continuous monitoring of the investment and technology landscapes to catch non-notified transactions, as well as monitoring for changes to board compositions or ownership models, which may not serve the UK’s security interests, after the initial transaction has taken place with Government intervention if necessary. … Read more

Government response AI summary
The government agrees that regular market monitoring to identify national security concerns should be a key part of the new regime but does not detail specific additional monitoring mechanisms or multi-departmental inputs.
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Foreign, Commonwealth & Development Office
4 Recommendation Third Report - Sovereignty for sale: th… Acknowledged

Ongoing monitoring of the global technology landscape by the FCDO should inform any future changes,...

Ongoing monitoring of the global technology landscape by the FCDO should inform any future changes, as needed, to (a) the sectors subject to mandatory notification under the National Security and Investment Bill, and (b) the factors to be taken into consideration by the BEIS Secretary of State when assessing transactions, … Read more

Government response AI summary
The government noted the recommendation, stating FCDO will be involved in future revisions of mandatory notification regulations to keep pace with technological changes but did not commit to FCDO's ongoing monitoring proactively informing changes or reporting on it in the annual report.
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Foreign, Commonwealth & Development Office
1 Conclusion Sixth report - Sovereignty for sale: fo… Acknowledged

In the absence of any evidence to the contrary, we have no choice but to...

In the absence of any evidence to the contrary, we have no choice but to assume that the NSA review that the Prime Minister said he had initiated has not, in fact, been started. In its response to this report, we ask that the Government set out the circumstances in … Read more

Government response AI summary
The government states that the Secretary of State for Business, Energy and Industrial Strategy must take decisions relating to national security in a quasi-judicial manner based on facts and evidence, with advice from the Investment Security Unit and potentially the National Security Advisor.
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Foreign, Commonwealth & Development Office
2 Conclusion Sixth report - Sovereignty for sale: fo… Acknowledged

The Government has explicitly recognised the criticality of semiconductors to the UK’s national security and...

The Government has explicitly recognised the criticality of semiconductors to the UK’s national security and wider global interests; likewise, the Chinese Government’s ambitions to achieve self-sufficiency in semiconductors and the means by which it aims to achieve this are well documented. These factors, compounded by the current global semiconductor shortage, … Read more

Government response AI summary
The government recognises the geostrategic importance of the semiconductor industry and states that the Department for Digital, Culture, Media and Sport are undertaking a review of the sector.
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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