Select committee: Defence Committee
Conclusion 11
Foreign Involvement in the Defence Supply Chain
Published 14 Feb 2021
Paragraph 55
Addressed to Ministry of Defence
Defence Committee Foreign Involvement in the Defence Supply Chain All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The new regime’s impact on foreign direct investment is, as yet, uncertain. If implemented efficiently the new regime should have little to no harmful impact on foreign direct investment to the UK defence supply chain, only preventing investment that is undesirable.
From: Defence Committee, Foreign Involvement in the Defence Supply Chain (HC 699), paragraph 55, 14 February 2021
Government response
The government responded to the whole report on 27 April 2021 (deadline 14 April 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report, agrees with parts of it, and maintains its existing risk-based, case-by-case approach to foreign investment in the defence supply chain.
- On a list of friendly countries, the Government "notes" the recommendation but considers its current "risk-based approach" "remains appropriate", with each case examined individually.
- On Chinese ownership, it "notes" the recommendation, says it has assessed and "will continue to assess" investments where there are national security concerns, and does not consider it appropriate to comment on individual past decisions.
- It welcomes the Committee's support for the National Security and Investment Bill, which it says will bring "new powers to modernise our investment screening regime".
- On communication with small and medium sized enterprises, it "will seek to further enhance related communications" and "plan[s] to publish a refreshed SME Action Plan later this year".