UK inward investment update

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Lord Grimstone, the British Secretary of State for Investment, insisted that Britain has not become more protectionist, arguing that as long as Chinese investment is “good for us” and defending the private equity industry against British companies, Chinese investment is welcome.

The UK will launch a comprehensive New national security law Covering foreign acquisitions, while ministers are seeking to reduce Chinese companies’ Nuclear energy sector.

But Griston told the Financial Times that foreign investment has increased productivity and created high-paying jobs; the new rules for screening foreign bids for domestic companies will set clear and “effective” basic rules.

Grimstone is preparing for the “Global Investment Summit” with the theme of green after Brexit in October, and will see “the largest investable capital we have at any time in the UK.”

The minister boasted that Britain is the most attractive place for foreign investment in the world, but he said that a new National Security and Investment Act Will ensure that it is always in the national interest.

Grimstone, former chairman of Barclays Bank, said that the new law will clarify the basic rules for acquiring British companies, similar to screening in the United States, France, Germany and Australia.

China Telecom Corporation Huawei The use of the UK’s 5G mobile phone network has been banned, and ministers are exploring ways to exclude Chinese state-owned nuclear energy companies from participating in future projects in the UK.

But Griston said that Britain still hopes to invest from China. “Yes, if this is a good investment for us, it is definitely welcome,” he said. “We are not so stupid and want to make investments that are not good for us.”

British concerns Too open policy In terms of foreign acquisitions, the National Security and Investment Law will take effect in January next year.

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

“If we want to get a lot of new investment [the] The UK has a responsibility to ensure that we have the system to ensure that the investment we receive is beneficial to us,” Grimstone said. “It is more effective, not interventionist. “

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

When asked about so-called “sales” of undervalued British companies — some of which are targeted by foreign private equity buyers — Grimstone admitted that Brexit uncertainty has helped depress share prices.

But he said that Britain’s departure from the European Union on January 1 — a new trade agreement — ended the uncertainty and allowed people to revisit the UK. “It provides a difficult environment for people to judge investment,” he said.

He also defended foreign private equity investors who target companies including supermarket chains MorrisonHe said: “Gone are the days when private equity was all related to divestitures.” “The best private equity firms want to build, not go bankrupt.”

Grimstone stated that the London Investment Summit in October will be an opportunity to “roll out the green carpet” and showcase the attractiveness of the UK as a green economy investment destination.

He said that about 200 of the world’s largest investors will participate in the event, which will be held before the United Kingdom hosts the United Nations. COP26 The Climate Change Summit in Glasgow in November.

Foreign investment is also crucial to boosting growth in regions such as the central and northern regions; opportunities in areas such as electric vehicles and renewable energy are multiplying.

He said that this is the “best time” to invest in the UK, partly because the government’s policy is also focused on decarbonizing the economy and trying to “upgrade” the economy.

He said: “There is such a coincidence between investment opportunities in the new economy and the country’s investment priorities.”