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Select Committee · Defence Committee

Foreign Involvement in the Defence Supply Chain

Status: Closed Opened: 30 Jul 2020 Closed: 9 Jul 2021 8 recommendations 6 conclusions 1 report

Following the COVID-19 pandemic, this inquiry and planned Sub-Committee will scrutinise the vulnerabilities of the UK’s defence supply chain. Focusing on the impact on SMEs and mid-sized companies, it will: assess the current level of foreign ownership, particularly by companies with links to states which could have “ulterior motives” explore the current and planned regulatory … Show more

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Reports

1 report
Title HC No. Published Items Response
Foreign Involvement in the Defence Supply Chain HC 699 14 Feb 2021 14 Responded

Recommendations & Conclusions

2 items
2 Conclusion Foreign Involvement in the Defence Supp… Acknowledged

As a result of the Ministry of Defence’s approach of encouraging inward investment, foreign involvement...

As a result of the Ministry of Defence’s approach of encouraging inward investment, foreign involvement in the UK defence supply chain is widespread, with the UK hosting a broad range of UK-based and international suppliers. This approach has brought many benefits to the UK defence industry and wider economy. Read more

Government response AI summary
The government agrees that its open approach to inward investment has brought significant benefits to the UK economy and defence industry, citing substantial FDI, job creation, and strengthened industrial base through multinational firms and international partnerships.
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Ministry of Defence
8 Conclusion Foreign Involvement in the Defence Supp… Acknowledged

The UK previously lacked foreign direct investment screening legislation which left the defence supply chain,...

The UK previously lacked foreign direct investment screening legislation which left the defence supply chain, alongside other sectors of the UK’s economy, vulnerable to influence from hostile foreign investors. The National Security and Investment Bill, once law, will change this situation and offer greater protection to the UK’s economy. Alongside … Read more

Government response AI summary
The government welcomes the committee's support for the National Security and Investment (NSI) Bill, affirming that it will introduce new powers to modernise the investment screening regime, ensure national security, and enable scrutiny of deals of any type or size.
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Ministry of Defence