British minister only supports Chinese investment ‘for our own good’ – Economy and Finance

Lord Grimstone, Britain’s Secretary of State for Investments, insisted that the UK had not become more protectionist, arguing that as long as Chinese investment was “good for us” and defended the private equity sector against corporations, British and Chinese investment would be welcome.

The UK will launch a full programme The new national security law on foreign acquisitions, while ministers try to shrink Chinese companies Nuclear energy sector.

But Greston told the Financial Times that foreign investment has increased productivity and created high-paying jobs. The new rules for examining foreign bids for domestic companies will establish clear and “effective” ground rules.

Grimstone is preparing for a “global investment summit” with the green theme after Brexit in October and will see “the largest investable capital we have ever had in the UK”.

The minister boasted that Britain was the most attractive place for foreign investment in the world, but said it was new National Security and Investment Law He will make sure that it is always in the national interest.

Grimston, the former head of Barclays, said the new law would set out the ground rules for takeovers of British companies, similar to screening in the United States, France, Germany and Australia.

China Telecom Company Huawei Use of the 5G mobile network has been banned in the UK and ministers are exploring ways to prevent Chinese state-owned nuclear power companies from participating in future projects in the UK.

But Greston said Britain was still hoping for investment from China. “Yes, if this is a good investment for us, it is certainly a welcome,” he said. “We are not that stupid and we want to make investments that are not in our favour.”

British fears very open policy Regarding overseas acquisitions, the National Security and Investment Act will enter into force in January next year.

It will cover the new bill 17 business sectors It will also investigate any investment in more than 25% of a UK company that has attracted attention. Basically, it can be used retroactively to fine companies.

“If we want to make a lot of new investments [the] “It is the UK’s responsibility to ensure that we have the system in place to ensure that the investment we receive is beneficial to us,” Grimstone said. It is more effective, not intrusive. “

He also made a full defense of foreign investment, noting that British companies with foreign investors are “more productive, creating more jobs and higher-paying jobs” than their domestic counterparts as well.

Asked about so-called “sales” of undervalued British companies, some of which target foreign private equity buyers, Grimstone acknowledged that the uncertainty over Brexit had helped drive down share prices.

But he said Britain’s January 1 exit from the European Union – a new trade agreement – ended the uncertainty and allowed people to return to the UK. “It provides people with a difficult environment to judge investments,” he said.

He also defended foreign private equity investors targeting companies including supermarket chains Morrison“Gone are the days when private equity was all about divestments,” he said. “The best private equity firms want to build, not go bankrupt.”

Grimstone said the London Investment Summit in October would be an opportunity to “roll the green carpet” and show the UK’s attractiveness as an investment destination for the green economy.

He said around 200 of the world’s largest investors will attend the event, which will take place before the United Kingdom hosts the United Nations. COP26 Climate Change Summit in Glasgow in November.

Foreign investment is also necessary to stimulate growth in regions such as the central and northern regions; Opportunities are multiplying in sectors such as electric vehicles and renewable energy.

He said this was the “best time” to invest in the UK, in part because government policy was also focused on decarbonizing the economy and trying to “upgrade” the economy.

“There is such a match between investment opportunities in the new economy and the country’s investment priorities,” he said.

Earl Warner

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